House Prices Predicted to Continue Rising in 2025
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Loading... - Brian Clarke
- 31 Oct 2024
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According to CGD's executive president, Paulo Macedo, housing prices are expected to rise further in 2025 due to a combination of insufficient supply and increased demand. At the “Encontro Fora da Caixa” conference in Faro, Macedo emphasized that the demand for housing will remain significantly higher than the available supply, leading to continued price increases.
Macedo attributed this trend to several factors, including a lack of affordable housing production and an increase in demand without adequate replenishment of production capacity by companies. He noted that the economic environment is also contributing to these dynamics, with anticipated growth driven by rising consumption, effective execution of the Recovery and Resilience Plan (PRR), low inflation, and decreasing interest rates.
While CGD projects economic growth at around 3%, Macedo cautioned that there are risks associated with these short-term forecasts. He highlighted that improved conditions for individuals—such as enhanced debt capacity, increased investment opportunities, and sustained employment levels—are expected to lead to higher disposable incomes. This includes real income growth for workers and pensioners, along with reductions in taxes and interest rates.
Overall, the outlook for the housing market in 2025 suggests that unless supply issues are addressed, rising prices will continue to pose challenges for potential buyers.
