In spite of the coronavirus pandemic that has seen house prices drop in many countries, the cost per square metre of housing in Portugal continues to rise, although the pandemic is putting a brake on the pace of growth. In the second quarter of 2020, house prices increased by 10.3% compared to the same period last year, standing at 1,137 euros/m2. But there are civil parishes throughout the country, specifically in Lisbon and Porto, where buying a house is much more expensive. We've taken a closer look at house prices in Portugal's two main cities, looking at both the cheapest and most expensive areas of Lisbon and Porto.
Property prices in Lisbon
3 of the 24 civil parishes of Lisbon registered median prices for the sale of housing above 4,500 euros/m2, which is well above the national median (1,137 euros/m2) and the city of Lisbon itself (3,376 euros/m2). These 3 areas, which are the most expensive areas of Lisbon, are Santo António (5,550 euros/m2), which includes Avenida da Liberdade and adjacent areas, Santa Maria Maior (5,111 euros/m2), which includes the area of the Castle and Baixa/Chiado, and Misericórdia (4,390 euros/m2), including the area of Bairro Alto and Cais do Sodré.
The areas of Parque das Nações, Estrela, Santa Maria Maior, Alvalade, Santo António and São Domingos de Benfica registered, simultaneously, a median price above the value of the city of Lisbon, and rates of variation, when compared to the same period in the previous year, are more pronunced than the city (+7.0%).
"The parishes of Beato, Olivais, Benfica, Marvila, Campolide, Carnide, Alcântara, Ajuda, Areeiro and São Vicente recorded the lowest prices in Lisbon and lower rates of change in the second quarter of 2020 than those of the city of Lisbon. Campolide (-5.6%) and Carnide (-0.9%) stand out because they recorded a decrease in housing prices compared to the same period in the previous year", INE points out. Besides these two, Avenidas Novas (-0.9%), Belém (-1.4%) and São Vicente (-2.7%) registered a reduction in housing prices compared to the same period of the previous year.
Property prices in Porto
The parishes of Aldoar, Foz do Douro e Nevogilde, as well as Lordelo do Ouro e Massarelos stood out among the parishes in Porto because they presented, simultaneously, a median price (2,708 euros/m2 and 2,354 euros/m2, respectively) above the value of the city of Porto (1,905 euros/m2) and a year-on-year rate of change (+15.4% and +14.4%, respectively) higher than that observed in the city (+8.1%).
The civil parish of Cedofeita, Santo Ildefonso, Sé, Miragaia, São Nicolau e Vitória also stood out for having both a median price of housing sold (2,215 euros/m2 ) above the value of the city of Porto and a year-on-year rate of variation (+6.4%) lower than that recorded in the city on the whole.
The areas of Ramalde, Bonfim and Campanhã registered, simultaneously, a median price (1,721 euros/m2 , 1,893 euros/m2 and 1,192 euros/m2 , respectively) and a year-on-year variation (+4.8%, +6.1% and +7.0%, respectively) lower than the values verified in the city of Porto.
In the second quarter of 2020, the Paranhos civil parish recorded a median price (1,761 euros/m2 ) lower than that of the city of Oporto and a year-on-year rate of change (+17.4%) higher than that recorded in the city. In the period under review, and as in the previous quarter, the parish of Campanhã recorded the lowest median price in Porto at 1,192 euros/m2.