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Economy day by day. Real estate market: “It’s not because young people don’t want to leave the house, it’s because they can’t”

The real estate sector is feeling the progressive increase in construction costs: permits fell by 20% in the first three months of 2022.

Ricardo Sousa, administrator of Century 21 for Portugal and Spain, says that the Portuguese outlook for 2022 is positive, as there is high demand. But the big concern is the supply side that doesn’t meet current needs, given escalating inflation, labor shortages and skyrocketing construction costs.

Hélder Martins, journalist in the economics section of Expresso, highlights the huge influx to large urban centers, which, with the rise in real estate prices, leads the population to look for housing in the cities around Lisbon and Porto.

Another major concern is young people, who are increasingly less likely to buy a home. Currently, the age of emancipation in Portugal is above 30 years. According to Ricardo Sousa, “it’s not because young people don’t want to leave the house, it’s because they can’t”.

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