Volume of Auctioned Properties in Portugal Falls by Half Since 2019
The sale of seized real estate assets through judicial auctions has seen a significant decline in Portugal, with the number of properties being liquidated falling to half the levels recorded in 2019. This market data, reported by Diário de Notícias, indicates a notable contraction in the supply of distressed properties available for purchase, reflecting broader shifts in the national economy and credit market.
The data originates from the activity of the e-Leilões platform, an electronic portal managed by the Ordem dos Solicitadores e Agentes de Execução (OSAE), which is responsible for conducting public auctions of seized assets. Over its nearly ten years of operation, the platform has facilitated the sale of 62,544 properties, including houses, land, and commercial buildings, generating a total transaction value of more than €7.6 billion for creditors.
However, a statistical analysis of recent activity reveals a clear downward trend. Between January and July 2025, a total of 3,269 properties were sold via auction, amounting to a combined value of €267.7 million. This figure points to a continued slowdown when compared to the full year of 2024, during which just over 5,000 real estate assets were alienated, generating €593.5 million in sales. These numbers are substantially lower than the market's peak activity in 2019, a year that saw approximately 10,000 properties go to auction.
This reduction in forced sales is a key economic indicator, suggesting a decrease in the number of defaults on mortgages and other loans that result in property seizure. Market analysts attribute this trend to a combination of factors, including a period of sustained low-interest rates that eased the burden on debtors, various government support mechanisms implemented during periods of economic stress, and a more robust labor market, which has improved the financial stability of households and businesses.
The geographic breakdown of these auctions, while not specified in the report, typically spans the entire country, including major urban centers like Lisbon and Porto as well as more rural regions. The decline in auctions is therefore understood to be a nationwide phenomenon. This shift affects the strategy of a specific class of investors who specialize in acquiring distressed assets at a discount. With fewer properties entering the auction pipeline, competition for available assets is expected to intensify, potentially leading to higher final sale prices.
From an industry perspective, the trend is viewed as a sign of a healthier and more mature real estate market. A representative from a leading real estate association noted that while the opportunities for speculative, high-volume auction purchases have diminished, the overall stability of the market has improved. This stability is seen as more conducive to long-term, sustainable investment and development, rather than short-term speculative plays. The data reflects a market that is less characterized by financial distress and more by standard transactional dynamics.
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