The Portuguese real estate market faces a significant decline in house sales in 2026, with a forecast drop between 5 to 7 percent. This contraction represents a reversal from the trends of recent years.
The main cause of this situation is the mismatch between property values and the incomes of Portuguese people. This discrepancy is severely limiting the purchasing capacity of national citizens, making access to housing increasingly difficult for the majority of the population.
Foreign investment, which has been an important driver of the Portuguese real estate market, is also losing momentum. This reduction in international demand contributes to the cooling of the sector.
Despite the decline in sales, house prices are not expected to fall. This situation creates a deadlock scenario in the market, where the combination of high prices, stagnant incomes and reduced external demand keeps the market in a state of unstable equilibrium.



