Buying property in Portugal is becoming more and more expensive. In the first quarter of 2020, the median price of housing was 1,117 euros per square metre, 3.3% more than in the previous quarter and 10.5% more than in the same period last year. This date has been produced by the National Statistics Institute in Portugal (INE), stressing that the figures do not yet reflect the impact of the COVID-19 pandemic on the housing market, meaning that they may "distance themselves from the most current market conditions and trends".
Property price summary in Portugal
According to INE, the median price of housing remained above the national value (the previously referred to 1,117 euros/m2) in the regions of Algarve (1,668 euros/m2), Lisbon Metropolitan Area (1,515 euros/m2), Madeira Autonomous Region (1,250 euros/m2) and Porto Metropolitan Area (1,136 euros/m2).
"In the period under review, 46 municipalities showed a median price higher than the national value, located mostly in the Algarve (14 out of 16 municipalities) and the Lisbon Metropolitan Area (15 out of 18)", concludes INE, adding that the municipality of Lisbon recorded the highest price in the country (3,333 euros/m2), i.e. a house of 100 m2 will cost around 333,000 euros.
"There were also property price values above 1,500 euros/m2 in Cascais (2,681 euros/m2), Oeiras (2,257 euros/m2), Loulé (2,221 euros/m2), Lagos (1,967 euros/m2), Albufeira (1,939 euros/m2), Porto (1,873 euros/m2), Tavira (1,864 euros/m2), Odivelas (1,847 euros/m2), Loures (1,672 euros/m2), Faro (1. 663 euros/m2), Funchal (1,621 euros/m2), Vila Real de Santo António (1,594 euros/m2), Aljezur (1,592 euros/m2), Lagoa (1,591 euros/m2), Almada (1,576 euros/m2), Amadora (1,563 euros/m2), Silves (1,528 euros/m2) and Matosinhos (1,520 euros/m2), two more municipalities than in the previous quarter", adds INE.
It is worth highlighting the fact that the biggest year-on-year price increase in Portugal was seen in the city of Vila Nova de Gaia, which saw median house prices accelerate by 20.1% (10.5% nationwide), to 1,125 euros/m2. Funchal (Madeira) registered the highest growth compared to the previous quarter (+5% compared to +3.3% in Portugal), to 1,621 euros/m2.
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New home prices vs. pre-owned properties in Portugal
Data released by INE show that between January and March 2020, the median price of new-build properties in the country was 1,209 euros/m2, a figure slightly higher than that for existing housing: 1,102 euros/m2.
"The Metropolitan Area of Lisbon (1,950 euros/m2), the Algarve (1,877 euros/m2), the Autonomous Region of Madeira (1,377 euros/m2) and the Metropolitan Area of Oporto (1,336 euros/m2) presented a median price of newly built properties above the national value. In the case of existing properties the same sub-regions exceeded the national benchmark: the highest price was recorded in the Algarve (1,627 euros/m2), followed by the Metropolitan Area of Lisbon (1,473 euros/m2), the Autonomous Region of Madeira (1,211 euros/m2), and the Metropolitan Area of Oporto (1,111 euros/m2)", concluded the Institute, adding that, as in previous quarters, the Metropolitan Area of Lisbon showed the greatest difference between the price of new and pre-owned properties (477 euros/m2).
It should also be noted that the city of Lisbon registered the biggest difference between the prices of new properties (4,379 euros/m2) and pre-owned homes (3,231 euros/m2), or 1,148 euros/m2.
Property prices in Lisbon
Three of the 24 parishes in Lisbon registered median prices for the sale of property above 4,500 euros/m2, well above the national median (1,117 euros/m2) and the city of Lisbon itself (3,333 euros/m2). These parished include Santo António (5,340 euros/m2), which includes Avenida da Liberdade and adjacent areas, Misericórdia (5,112 euros/m2), which includes the area of Bairro Alto and Cais do Sodré, and Santa Maria Maior (4,807 euros/m2), which includes the area of Castelo and Baixa/Chiado, according to INE.
"The parishes of Parque das Nações, Misericórdia, Estrela, Santo António, São Domingos de Benfica, Alvalade, Santa Maria Maior and Campo de Ourique registered, simultaneously, a median price above the value of the city of Lisbon (3,333 euros/m2) and rates of variation, compared to the same period of the previous year, more expressive than the city itself (+7.1%). The parishes of Marvila, Carnide, Campolide, Alcântara, Ajuda and Arroios registered prices and rates of variation lower than those of the city of Lisbon. The parishes of Santa Clara (2,393 euros/m2) and Olivais (2,463 euros/m2) showed values below 2,500 euros/m2. The parishes of São Vicente, Carnide and Campolide were the only ones with a negative price evolution", reads the document.
Property prices Porto
In the case of Porto, the parishes of Bonfim, the grouped parishes of Lordelo do Ouro and Massarelos, and the grouped parishes of Aldoar, Foz do Douro and Nevogilde, show a median price above the value of the city of Porto (1,873 euros/m2): these values are 1,934 euros/m2, 2,241 euros/m2 and 2,593 euros/m2, respectively. This is also a year-on-year rate of change (+16.9%, +16.2% and +11.6%, respectively) higher than that observed in the city (+11.4%).
"The grouped parishes of Cedofeita, Santo Ildefonso, Sé, Miragaia, São Nicolau and Vitória stood out for presenting, simultaneously, a median sale price (2,169 euros/m2) above the value of the city of Porto and a rate of variation, compared to the same period of the previous year (+9.8%), lower than that registered in the city of Porto. The parishes of Ramalde and Campanhã registered, simultaneously, a median price (1,637 euros/m2 and 1,208 euros/m2, respectively) and a year-on-year variation (+4.6% and +9%, respectively) lower than the values registered in the city of Porto", says INE, concluding that the parish of Campanhã registered the lowest median price (1,208 euros/m2) and the parish of Paranhos the highest rate of variation in relation to the same period of the previous year (+19.3%).
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