New figures from the National Statistics Institute (INE) show that 40,142 homes changed hands between April and June this year. Of these, 38,252, or 95.3%, were bought by people resident in Portugal.

Although residents remain firmly behind most transactions, they are also buying fewer properties. The number of purchases made by residents fell by 6.2% compared with the same period last year.

However, the amount of money involved moved in the opposite direction. Purchases by residents were worth €9.9 billion during the quarter, an increase of 4.8% year-on-year.

This means fewer homes are changing hands, but those that are sold are coming with higher price tags. The average amount paid by resident buyers reached a record €258,832, 11.8% higher than a year earlier.

Families continued to make up the biggest group of buyers. Between April and June, they bought 34,935 homes, or 87% of all properties sold during this period. This was down 7.3% compared to last year. Despite fewer purchases, families spent more, with the total value reaching €9.3 billion. On average, they paid €265,135 for a home.

The picture is different among buyers living outside Portugal.

Non-residents purchased 1,890 homes during the second quarter, accounting for just 4.7% of transactions. This was a fall of 10.3% compared with the same period last year.

The amount spent by these buyers also dropped, falling 3% to €796 million. Those who did buy, however, continued to spend considerably more per property. The average purchase reached €421,166, up 7.6% in a year.

Purchases by non-residents have been declining for several years, following changes including the end of property investment under the golden visa programme and the closure of the former Non-Habitual Resident regime.

Another change arrived this year. Since May, non-resident buyers have faced a fixed 7.5% IMT property transfer tax, although there are exceptions under certain circumstances.

Among overseas buyers, 946 purchases during the quarter were made by people resident elsewhere in the European Union, while 944 involved buyers from countries outside the EU. Transactions in both groups declined compared with last year, falling by 14.9% and 5.1% respectively.

The figures suggest that Portugal's housing market is increasingly being driven by people already living in the country, even as the overall number of property sales slows.

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