Compared to real estate transactions carried out by foreigners and emigrants, it appears that families living in the country are buying houses for lower prices, but have borrowed more money from banks, according to the most recent quarterly report from idealista/créditohabitação in Portugal.

Looking at mortgages in Portugal formalized in the fourth quarter of 2023, it appears that 35.5% of contracts were intended for the purchase of the first home by families living in the country – a purpose surpassed by credit transfers (38% of total). And it was also observed that one in every five housing loans were taken out by non-residents (emigrants and foreigners).

Families residing in Portugal who took out housing credit in the final stretch of last year purchased their first home for an average cost of 223,953 euros, a value 14.1% lower than a year ago and 13.2% lower than that recorded in previous quarter. It was also noted that the average purchase price of a house by the Portuguese is 14% lower than the purchase price of housing in Portugal by foreigners and emigrants, which stood at 260,370 euros at the end of the year.

This shows that the Portuguese continue to buy cheaper houses that are compatible with their family income – a trend already seen throughout the year. And even if they decide to move forward with the acquisition of more affordable homes than non-residents.