Portugal's mortgage boom hits 12-year high as young buyers lead €23B surge

Portuguese banks approved over €23 billion in new balance mortgages last year, marking the highest lending level in 12 years. The total represents a €6 billion rise compared to 2022. News of government incentives and younger buyers drove much of this growth.

The surge in mortgage lending saw borrowers under 35 take out roughly 60% of the total value for primary homes. Their share highlights a strong demand from younger households entering the property market.

Tax breaks on property transfer duties (IMT) and state-backed mortgage calculator guarantees supported around 60% of the new agreements. These measures made homebuying more accessible, particularly for first-time buyers.

No official data was released comparing 2023 interest rates between younger and older borrowers. However, the overall increase in lending suggests favourable conditions for those securing loans.

The 2023 figures confirm a significant rebound in Portugal's mortgage market. With €23 billion in new lending, the sector reached its highest point since 2011. Younger buyers and government support played a key role in this expansion.