João Pedro Pereira, from ERA Portugal’s executive board, told Lusa that there would be a rise in supply in the real estate market if the legal and fiscal framework was maintained.

“Many decisions regarding construction that were taken in the past years and up until now will finally lead to new properties coming onto on the market,” he said.

“These are welcome and will lead to a slowdown in spiralling prices in the most expensive areas and will improve the quality of the housing offer in Portugal,” Mr Pedro Pereira added.

He said that in historic areas the offer would continue to be made through the renovation of buildings, as “there is no space for new constructions.”

Regarding claims that there could be a housing bubble, Mr Pedro Pereira said this scenario was raised by people who didn't "take into account the fact that offer in the real estate market can take many years to adjust to demand.”