Seller's Market in Portugal: is the real estate market still strong or is it starting to slow down?

The real estate market in Portugal remains marked by high demand and limited supply, especially in the most sought-after areas of Lisbon, Cascais and Porto. But, given the current economic and financial context, the question arises: are we still in a true seller's market or are signs of slowing down beginning to emerge?

The reality is that the market remains resilient. Supply shortages continue to support prices, especially in premium segments and in central locations, where demand (domestic and international) remains consistent. However, the behavior of buyers is changing.

Today, customers are more informed, more selective and more attentive to the relationship between price, location and appreciation potential. The time when practically any property generated multiple proposals in a few days is beginning to give way to a more balanced market in certain segments.

Even so, properties with differentiating characteristics continue to stand out: good location, energy efficiency, natural light, outdoor spaces and investment potential are increasingly decisive factors.

At the same time, the gradual reduction in interest rates and new housing incentive measures may boost demand again over the coming months, particularly among buyers who were on hold during the period of greatest financial instability.

For investors, the scenario remains attractive, especially in assets with potential for rehabilitation, long-term rental or flexible use. In cities like Lisbon, where new supply remains below demand, real estate remains a solid asset in the medium and long term.

More than a market in cooling, what we see is a phase of greater maturity and selectivity, where strategy, positioning and product quality make more and more difference.

At Mulberry, we continue to closely monitor market trends to identify opportunities in line with evolving demand and the upside potential of each asset.