Buying a house in Portugal is getting more expensive… buy while you still can!

39 Portuguese municipalities registered median property prices above the national average / Creative commons
39 Portuguese municipalities registered median property prices above the national average / Creative commons
23 May 2018, Redaction

Buying a home is definitely getting more expensive. In just one year, from the fourth quarter of 2016 to the fourth quarter of 2017, the average price of properties sold rose by 7.6%, from 866 euro per square metre, or 80 euro per square foot, to 932 euro per square metre, or 86 euro per square foot.

In Lisbon, the capital city, the average cost of buying a house is 2,438 euro/m2 (226 euro/sq ft), although prices can exceed 3,820 euro/m2 (355 euro/sq ft).

Figures released by the National Institute of Statistics (Instituto Nacional de Estatística or INE) conclude that "the average price of housing remained above the national rate in the Algarve (1,383 euro/m2 or 128 euro/sq ft), the Lisbon Metropolitan Area (1,262 euro/m2 or 117 euro/sq ft) and the Autonomous Region of Madeira (1,126 euro/m2 or 105 euro/sq ft)”.

In the Metropolitan Area of Porto, the average price of the properties sold in the fourth quarter of last year was 893 euro/m2 or 83 euro/sq ft.

Between October and December last year, the seven cities in the country with more than 100,000 inhabitants saw house prices soar. In Lisbon, they rose by 18.1%, in Porto 17.6%, and in Amadora 15.9%; these cities, in that order, occupy the top three places.

In the capital city, prices rose to 2,438 euro/m2 (226 euro/sq ft), in Porto they rose to 1,307 euro/m2 (121 euro/sq ft) and in Amadora they rose to 1,037 euro/m2 (96 euro/sq ft).

Which neighbourhoods are most expensive?

According to the INE, there are 39 municipalities that register a median value of property prices above the national average, the already mentioned 932 euro/m2 or 86 euro/sq ft. Most of them are in the Algarve, where almost all have prices above 1,000 euro/m2 (93 euro/sq ft), and in the metropolitan area of Lisbon.

So where is it most expensive to buy property in Portugal? It’s in Lisbon, in the neighbourhoods of San Antonio (including Avenida da Liberdade and its surroundings) and Misericordia (including the area of Barrio Alto and Cais do Sodre). In these two areas of the capital, properties were sold in the fourth quarter of last year for 3,827 euro/m2 (356 euro/sq ft) and 3,520 euros/m2 (327 euro/sq ft). This is a year-on-year increase of 54.3% and 30.2% respectively.

"During this period, the neighborhoods of Estrela, Avenidas Novas, Campo de Ourique, São Vincente, Belém and Arroios also simultaneously recorded average prices of the properties sold above the average value of Lisbon (2,438 euro/m2 or 226 euro/sq ft). The rates of variation, compared to the same period in the previous year, were more pronounced than the one verified in the city (+18.1%)," points out the INE.

In the case of Porto, the union of the districts of Cedofeita, Santo Ildefonso, Sé, Miragaia, São Nicolau and Vitória and the union of the districts of Aldoar, Foz do Douro and Nevogilde were the ones with the highest average sales prices: 1,512 euro/m2 (140 euro/sq ft) and 1,955 euro/m2 (181 euro/sq ft), respectively.

This is higher than the mean value of the city (1,307 euro/m2 or 121 euro/sq ft) and much higher than in the same period of the previous year (year-on-year variations of +35.7% and +20.2%, respectively).

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