Building Permits on the Rise: More New Homes Under Construction in Portugal
The Portuguese real estate market saw a positive trend in the second quarter of 2026: despite a decrease in the total number of licensed buildings, the construction of single-family homes showed more dynamic growth, with increases in both the number of licensed housing units and completed housing units.
The data released by the National Institute of Statistics (INE) reveal an important fact for those who follow the real estate market: the number of buildings and the number of housing units are not exactly the same thing. A single building can contain several apartments, and therefore a reduction in the number of licensed buildings does not necessarily mean a reduction in future housing supply. (Webinq)
More than 11,000 new housing units licensed
Between April and June 2026, approximately 11,834 units in new residential buildings intended for single-family housing, representing a year-over-year increase of 10.8%.
This result is even more significant because, in the first quarter of the year, the number of licensed housing units had decreased by 2.2%.
In other words, the second quarter saw a reversal of the trend and a significant increase in the number of housing units authorized to proceed. (LinkedIn)
For those following the evolution of the real estate supply in Portugal, this is an indicator worth noting.
More building permits do not mean that these homes are immediately available for purchase. There is a time lag between project approval, construction, completion of the project, and the property’s actual listing on the market.
Even so, the growth in the number of licensed housing units represents an increase in future supply potential.
The number of completed homes also increased
The positive trend was not limited to licensing.
In the second quarter of 2026, approximately 7,400 units in new single-family housing developments, an increase of 11.6% compared to the same period the previous year.
This result also marks a reversal from the first quarter, when the number of completed dwellings had decreased by 1.5%. (Webinq)
In practice, this means that the market is simultaneously experiencing:
More housing units licensed;
More housing units completed;
Increased activity in residential construction;
A recovery from some of the negative indicators recorded at the beginning of the year.
This is a significant development in a market where housing supply remains one of the main issues.
Fewer buildings, but more housing
At first glance, the numbers may seem contradictory.
In the second quarter, permits were issued for approximately 6,200 buildings in Portugal, down 7.1% year-over-year. However, within that total, the number of units intended for family housing in new construction increased by 10.8%. (Webinq)
The explanation lies in the size of the projects.
An apartment building may represent just one structure but contain dozens of units. Therefore, tracking only the number of buildings can provide an incomplete picture of the evolution of housing supply.
For the residential market, the number of licensed housing units is particularly important because it provides a better understanding of how many new housing units are entering the construction pipeline.
What is happening in the different regions?
The trend is not the same across the entire country.
In the second quarter, Greater Lisbon recorded a 38% increase in licensed housing units in new single-family residential construction, while the North continued to account for the largest share of the national total, at 47.8%.
The Center accounted for about 16%, and Greater Lisbon for 13.9%. (WIRE Portugal)
There are also significant regional differences in completed housing units.
Greater Lisbon recorded a 24.5% increase, while the North saw an 18.4% rise and the Center a 12.1% rise. In contrast, the West and Tagus Valley region saw a 17.3% decline in completed housing units. (WIRE Portugal)
This regional diversity shows why the real estate market should be analyzed on a local scale.
The behavior of the national market does not necessarily reflect what is happening in a particular city or municipality.
And what does this mean for Peniche?
For those who follow the real estate market in Peniche and the Western region, this data should be interpreted with caution.
The nationwide growth in housing permits does not automatically mean that supply in Peniche will increase at the same rate. Land availability, approved projects, construction costs, urban planning processes, and local demand are factors that directly influence the evolution of supply in each municipality.
Therefore, anyone looking to buy, sell, or invest should consider not only national trends but also:
New housing projects in the region;
Properties currently under construction;
Land with development potential;
Approved permits;
Trends in demand;
Prices per square meter;
Specific characteristics of each location.
It is this local perspective that allows us to transform national data into useful information for real estate decisions.
Does more construction mean lower prices?
Not necessarily.
The increase in the number of licensed housing units is a positive sign from the perspective of future supply, but it does not, on its own, allow us to conclude that home prices will fall.
The price of a property depends on several factors, including:
Supply and demand;
Location;
Construction costs;
Availability of land;
Financing;
Property quality and features;
Demand for owner-occupied housing;
Tourism and investment demand.
In addition, construction costs continue to be a significant factor. In July 2026, construction costs for new housing rose 6.8% year-over-year, according to INE. (National Institute of Statistics)
Thus, a greater number of homes under construction does not automatically mean cheaper housing.
What should homebuyers do?
For those looking to buy a home, this is a time when it’s worth monitoring how the housing supply evolves, but without basing a decision solely on a national trend.
Before moving forward, it’s important to:
Set a realistic budget;
Compare similar properties in the same area;
Assess the condition and quality of the construction;
Verify the property’s documentation;
Assess the purchase costs;
Compare different financing options;
Familiarize yourself with the projects and existing supply in your desired location.
A larger future supply may mean more choice for buyers, but each property still needs to be analyzed individually.
And what about those looking to sell?
New housing developments can also gradually change the available supply in a given area.
For a homeowner looking to sell, understanding current and future competition can be crucial to developing an effective strategy.
A property that is well-presented, properly valued, and marketed to the right audience can stand out even in a market with a larger supply.
This is precisely why a local real estate analysis should consider not only the properties currently for sale, but also the foreseeable evolution of supply.
A positive sign for the housing market
Data from the second quarter of 2026 show a clear recovery in the number of units licensed and completed for single-family housing.
The growth of 10.8% in licensed housing units and 11.6% in completed housing units represents a significant development for the Portuguese residential market. (Webinq)
However, these figures should be interpreted with caution.
A permit does not yet mean a home is available on the market. There are several stages between a building permit being issued and a home being delivered, and the pace can vary significantly between projects and regions.
For buyers, sellers, and investors, the main takeaway is simple: keeping track of changes in supply has become increasingly important.
And, in a local market like Peniche, knowing the projects, current prices, and demand in the area can make all the difference in the decision-making process.
Need help with this topic?
Ricardo Raposo
Real Estate Consultant — MaisConsultores TEAM
📍 Peniche
📱 963516073
✉️ ricardo.raposo@maisconsultores.pt
🏢 AMI: 23990
👉 Contact me for a no-obligation consultation.