The increase in home sales in recent months has contributed to a reduction in the stock of housing available in Portuguese district capitals of around 7 percent in just one year.
According to a study published by idealista, regarding the Southern Europe real estate marketplace, in Portugal the number of homes available for sale went from 58,570 properties in September 2020 to 54,804 in the same month this year. This alteration in supply could potentially lead to a rise in house prices in the medium term according to the report.
However, there is no homogeneous pattern in all district capitals, as in five of them the stock of houses for sale increased. The biggest increase in supply took place in Vila Real, where buyers now have 87 percent more homes available on the market than in September 2020. It is followed by Coimbra (38 percent), Guarda (12 percent) and Castelo Branco (9 percent). Finally, Funchal presented a 6 percent increase in housing stock for sale.
On the other hand, the biggest declines in the supply of houses - and consequently, where the tension in prices may increase - were registered in Évora and Setúbal, as the stock of houses for sale fell by 30 percent and 29 percent, respectively. This is followed by Santarém (-23 percent), Faro (-20 percent), Leiria (-19 percent), Bragança (-18 percent) and Portalegre (-14 percent). The reduction in the supply of houses on the market was also significant in Braga (-11 percent), Porto (-9 percent) and Viana do Castelo (-8 percent).
Finally, the district capitals that presented a smaller decrease in the offer of properties in the last twelve months were Viseu (-7 percent), Ponta Delgada (-7 percent), Lisbon (-5 percent), Beja (-4 percent) and Aveiro, where the offer of houses for sale also decreased by 4 percent.