Portugal luxury housing market sees 19,000 homes over €1 million

The Portuguese real estate market shows a significant concentration of luxury properties, with over 19,000 homes listed for sale above one million euros. According to data from the real estate portal Idealista, the majority of these high-end listings are located in the districts of Lisbon and Faro. Lisbon holds the highest volume of luxury advertisements with 9,310 listings, while Bragança recorded the lowest with only three.

Concurrently, potential homebuyers face tightening credit conditions. New regulations from the Bank of Portugal have introduced stricter requirements, including a maximum debt-to-income ratio (taxa de esforço) of 45% and the end of 100% financing for those trading existing homes. Experts note that age significantly impacts mortgage accessibility, with individuals over 35 requiring three times more savings than younger buyers. Banks anticipate a potential 10% decrease in the granting of new loans due to these more severe restrictions.