English
The property market boom in Portugal continues, with house prices continuing to rise across all of the country.
The “Portugal News” website presents an overview according to the price index in the real estate magazine idealista, according to which it can be seen that house prices for purchase in Portugal have risen by an average of 8.4% in the last year, based on data from September 2020 to September 2021.
The data show that at the end of September 2021 the price per square meter was 2226 euros, given the median value. In this article, we will present the prices per square meter in the various regions of Portugal, from the most expensive to the cheaper ones.
Against the background of price increases for final buyers, Portugal, like the rest of the world, suffers drastic increases in construction costs (increases in materials, transportation, and a severe shortage of inventory) in a post-Corona world. It seems that the coming year is expected to intensify the phenomenon.
Highs and lows
Over the past year, property prices have risen in all regions, with the Autonomous Region of Madeira heading up the list with an increase of 17.4 percent. This is followed by the Metropolitan Area of Lisbon (10.1 percent), the Algarve (7.9 percent), the Centre (7.8 percent), the North (7.1 percent), the Alentejo (5.8 percent) and the Autonomous Region of the Azores (4.7 percent).
Overall Lisbon continues to be the priciest place to buy a property in Portugal with property averaging €3,252m2, while the Algarve continues to also be a popular choice, pushing prices up to €2,527m2. The next most expensive area is the North (€1,914m2) followed by the Autonomous Region of Madeira (€1,872m2). At the other end of the scale is the Autonomous Region of the Azores (€1,044 m2), the Alentejo (€1,088m2), and the Centre (€1,168m2), all being the cheapest regions in Portugal.
Price hikes and drops
Of the districts analyzed by idealista, the highest increases were seen in Vila Real (19.9 percent), Ilha da Madeira (17.4 percent), Évora (14.7 percent), Setúbal (12.5 percent), Aveiro (12.4 percent), Lisbon (10.2 percent), Leiria (9.5%), Porto (8.4 percent), Faro (7.9 percent) and Santarém (6.6 percent).
There have, however, been some areas of Portugal that have seen prices fall over the past year. House prices decreased in Portalegre (-5.9 percent), Bragança (-1.7 percent), Guarda (-1.2 percent) and Ilha do Pico (-1.1 percent).
Notwithstanding the above, in the coming months (1.1.2022) the regulatory changes will be introduced in the Golden Visa program which will remove investors from the demand centers in Portugal. This may have some effect on demand and consequently on costs as well, so we recommend keeping an eye on developments in the coming months. We promise to update.
For investors – as always, the right investment is a matter of timing. Those who purchased until a year ago have recorded their profits significantly in the past year. However, as this trend of price increases seems likely to continue, it is advisable to take advantage of the window of opportunity that is still open, long before what appears to be the realization of Portugal’s price potential.
For more information, you can contact us in any of the following ways:
info@portpassclub.com | Phone 073-3229414 | Our address: Habarzel 11 Tel Aviv
