House prices in Europe increased by an average of 2.9% in the second quarter of 2024, with 21 of the 30 countries analysed recording new highs. Portugal, in addition to occupying a prominent position in price increases, is also evident in the rental market, being the 8th country with the highest growth in rentals.

This phenomenon is attributed to the recovery in demand and frictions in the housing market, such as a shortage of supply and more restrictive regulations. In Portugal, the parity between the monthly cost of a mortgage and the average rent means that, currently, it is financially indifferent to choose to buy or rent, according to experts.

Experts from BNP Paribas Real Estate and Worx Real Estate Consultants predict that the trend of property appreciation across Europe will continue into 2025, driven by improving household incomes and falling interest rates. Likewise, they predict that rent increases will continue next year, but at a slower pace.

However, the lack of supply could limit the dynamism of the residential market in the coming months. "The investment will correspond to the opportunities that exist in the market next year, as the lack of product is clear and the residential sector presents strong fundamentals of imbalance between supply and demand".