This article examines the evolution of Portugal's residential real estate market over the first 25 years of the 21st century, focusing on short-term determinants of housing transaction values from 2000 to 2025. Key findings include:

- Dominant Role of Macroeconomics: GDP growth is the primary driver of housing market activity, with effects lasting several quarters. - Financial Conditions Matter: Housing credit conditions and household financial stress significantly influence transaction values, while short-term interest rates and confidence indicators have limited independent effects. - Limited Impact of Immigration: Immigration flows do not show a significant short-term effect once macroeconomic and financial factors are accounted for. - Market Resilience and Challenges: Despite crises like the 2008 financial crash and COVID-19, the market demonstrated resilience, with recent years showing strong price appreciation driven by demand, supply shortages, and international investment. - Structural Trends: The market has become increasingly sensitive to global macroeconomic factors, with rising construction costs and regional disparities influencing prices and supply.

The study emphasizes the importance of coordinated housing and macroprudential policies to manage cyclical risks and promote sustainable, affordable housing development. It highlights that Portugal's housing market remains dynamic, internationalized, and resilient but faces ongoing affordability and regional inequality challenges.