Real Estate 2025: Key Trends to Know

The real estate market trends in Portugal for 2025 indicate a scenario of cautious optimism, driven by factors such as economic recovery, lower interest rates, and increased demand for sustainable and technologically advanced homes.

These factors will continue to encourage investment in new homes in 2025. The economic conditions seem to be aligned for the real estate sector to fully regain its strength in 2025: the labor market is expected to remain resilient, inflation in the eurozone should stabilize near 2%, and GDP, although weak, is forecasted to grow by 1.1%, according to projections from the European Central Bank (ECB). On the other hand, geopolitical instability, along with increased regulation and rising construction costs, remain concerns.

Real estate analysts are increasingly aware of the need to identify investment opportunities in physical infrastructures that will support technology, innovation, digitization, and decarbonization in the future. Data centers now rank first in terms of investment, development, and global revenue forecasts for 2025, followed by energy infrastructure assets.

• Digitization and Virtual Tours: The growing digitization of the sector is driving the adoption of virtual tours, allowing potential buyers to explore properties remotely, enhancing the efficiency and reach of transactions.
• AI as a Reality: Across all sectors and areas of real estate, AI seems to be increasingly a reality and a determining factor for the future. Whether in rentals, where technology is used to predict when a tenant will move out and what influences their choice of one property over another, or in hospitality, to maximize hotel occupancy and manage overbooking – predicting reservation cancellations.
• Sustainability and Energy Efficiency: Sustainability was considered the key trend of the previous year, and there is growing demand for eco-friendly and energy-efficient homes, reflecting buyers’ environmental concerns and the search for reduced operational costs.
• Flexibility and Customization: Buyers are increasingly valuing spaces that are adaptable to their specific needs, driving demand for properties offering flexible use and customization options.
• Best Value Markets: Investors are focusing on segments like health and leisure, which show solid fundamentals and growth potential, diversifying their portfolios.

In 2025, the real estate market in Portugal is expected to continue being driven by a more favorable economic scenario, with moderate growth and growing demand for sustainable homes adaptable to new technologies. Despite challenges like geopolitical instability and rising construction costs, digitization and flexible space design will be crucial in attracting buyers and investors.

The market should thus continue to evolve based on new needs and environmental demands, presenting a promising scenario, although with attention to external risks and operational costs.