House prices in Portugal continue to rise in the midst of the pandemic

Median prices stand at 2,090 euros/m2, falling in Lisbon (1.1%) and rising in Porto (0.7%), according to the idealista price index.

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Gtres
7 October 2020, Redaction

After rising by 1.6% and 0.5% in the first and second quarters of 2020 respectively, compared to previous quarters, house prices in Portugal continue to rise during the COVID-19 pandemic: prices rose by 1% between July and September compared to the previous three months, to 2,090 euros/m2. In annual terms, compared to the third quarter of 2019, the increase amounts to 5.5%, according to the idealista price index. 

Property prices in Portuguese regions

The regions that saw a quarterly price increase were the Central region (4.4%), the Autonomous Region of Madeira (2.5%), the Algarve (2.1%) and Portugal's Northern region (1.3%). On the other hand, prices fell in the Autonomous Region of the Azores (-4.5%), the Metropolitan Area of Lisbon (-1.4%) and in the Alentejo region (-0.2%).

The Metropolitan Area of Lisbon, with prices of 2,954 euros/m2, remains the most expensive region in Portugal, followed by the Algarve (2,343 euros/m2), the North (1,787 euros/m2) and the Autonomous Region of Madeira (1,595 euros/m2). On the opposite side of the table are the Autonomous Region of the Azores (997 euros/m2), the Alentejo region (1,029 euros/m2) and the Central region (1,083 euros/m2), which are the cheapest regions to buy property in Portugal.

Property prices in Portuguese Districts

Of the Portuguese districts analysed, the largest increases were seen in Braga (8.5%), Aveiro (6.1%), Coimbra (4.9%), Viseu (4.7%), Bragança (3.2%) and Madeira (2.7%). In the case of Faro, the increasewas 2.1%.

On the other hand, prices fell on the island of São Miguel (-6.6%), in Évora (-5.2%), Terceira (-3%), Porto Santo (-2.5%), Portalegre (-1.8%), Lisbon (-1.5%) and Castelo Branco (-0.1%). 

It should be noted that the ranking of the most expensive districts continues to be led by Lisbon (3,268 euros/m2), followed by Faro (2,343 euros/m2) and Porto (2,087 euros/m2). The cheapest prices are in Portalegre (634 euros/m2), Guarda (644 euros/m2), Castelo Branco (695 euros/m2) and Bragança (775 euros/m2). 

Property prices in District capital cities

Prices increased in 15 district capitals, with Vila Real (13.1%) leading the list, followed by Portalegre (8.7%), Guarda (8.3%), Aveiro (6.5%), Bragrança (5.6%) and Coimbra and Viseu (5% in both cities). In Faro and Porto the increases were 2% and 0.7% respectively. 

On the other hand, it was in the city of Ponta Delgada (Azores) that prices fell the most: -4.8%. Next were Évora (-4.4%), Viana do Castelo (-2.5%) and Lisbon (-1.1%). 

Lisbon is still, however, the city where it is more expensive to buy a house at 4,614 euros/m2. Porto (2,895 euros/m2) and Faro (1,949 euros/m2) occupy the second and third places on the podium respectively. The most economical cities are Guarda (690 euros/m2), Portalegre (700 euros/m2), Castelo Branco (750 eeuros/m2) and Beja (780 euros/m2).

The idealista property price index

Since the report for the first quarter of 2019, the methodology for preparing this study has been updated. Since the incorporation of the idealista/data department, new calculation formulas have been introduced which contribute to greater precision in the analysis of price evolution, particularly in small areas. 

On the recommendation of the idealista/data statistical team, the formula for finding the average price has been updated: in addition to eliminating atypical property listings and with prices outside the market, we calculate the median value instead of the average value. With this change, in addition to bringing the study closer to the reality of the market, we homologate our methodology with that applied in other countries to obtain real estate data. 

We also include the "single-family homes" typology and discard all listings that are in our database that have been for some time without any kind of interaction by users. The report is still based on the prices published by idealista advertisers. 

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