The price of houses is constantly rising in Portugal, with the increase in the national average being greater for used houses than new ones, despite the fact that new properties are also more expensive and are selling more and more. In total, sales values in the second quarter of 2018 reached 6.2 billion euro, 34.9% more than in the same period in 2017. All this is shown by the most recent data from the Portuguese National Statistics Institute (Instituto Nacional de Estatística or INE).
"The Housing Price Index (Índice de Preços da Habitação or IPHab) increased, in homologous terms, by 11.2% in the second quarter of 2018," reports the INE in a statement, noting that "the rate of growth of prices of existing housing was double that observed in new housing (12.6% and 6.3%, respectively).”
Between April and June 2018, there were 45,619 property transactions in Portugal, a 23.7% increase on the same period last year and a new quarterly high.
Number of new home transactions continues to rise
There was a total of 38,880 sales of second-hand homes, which is an increase of 24.8% compared with the same period last year. On the other hand, 6,739 sales were recorded of new properties, 17.5% more than in the second quarter of 2017, and this "number of transactions corresponded to the highest record in the last 4 and a half years", according to the INE.
Also notable is the fact that, in terms of the number of transactions, "the observed increase was more pronounced in the case of new constructions, with a variation rate of 14.3%, the highest since the fourth quarter of 2014". In existing homes, the increase in the number of transactions was 11.7%. This means that there has been a rise of 12% (variation of -4.1% with respect to the previous quarter).
Although used houses make up 5 billion euro of the total value of transactions (6.2 billion euro) "the growth observed in the value of sales of new accommodation (17.5%) exceeded that of existing accommodation (13.3%).”
Almost half of sales are concentrated in Lisbon
In all the inland regions of Portugal, quarterly sales peaks were observed in the period under analysis. The Lisbon Metropolitan Area, which accounts for 35.8% of total transactions, recorded 16,331 sales. The North region, which has the second highest number of transactions (29.1%), exceeded the 13,000 transaction threshold for the first time. For the third time in the last four quarters, the Central region recorded more than 7,000 transactions, while the Algarve exceeded 4,000 home sales. For the fifth consecutive quarter, the Alentejo had more than 2,000 transactions.
Between April and June 2018, the value of transactions in the Lisbon Metropolitan Area was approximately three billion euro, 48.1% of the total. In the North, for the fifth consecutive quarter, the value of transactions exceeded one billion euro. The Alentejo and the Algarve surpassed 200 and 700 million euro for the first time in one quarter, respectively.