Property sales figures in Portugal rise 16.6% in 2018 to reach 10-year high

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29 August 2019, Redaction

178,691 homes were sold in Portugal in 2018, 16.6% more than the previous year. This is the highest figure in the last 10 years, since 2009, according to the National Institute of Statistics (INE). The number of licensed buildings increased by 17.6% compared to the same period last year, and 22,200 buildings were licensed.

"Of the total operations carried out, 85.2% corresponded to existing accommodation, 0.7% more than the previous year. In 2018, the average price of single-family homes sold in Portugal was 996 euros per metre squared (which is 93 euros per square foot), representing an increase of 6.9% over the previous year. The average price of housing exceeded the national value in the Algarve (1,523 euros/m2 or 141 euros/sq ft), Lisbon Metropolitan Area (1,333 euros/m2 or 124 euros/sq ft) and Madeira Autonomous Region (1,207 euros/m2 or 112 euros/sq ft)," concludes the INE.

The number of licensed buildings increases by 17.6%

The number of licensed buildings in the country grew by 17.6% compared to the previous year, which is 22,223 buildings. "New licensed buildings reinforced their predominance in 2018, being 68.9% of the total licensed buildings (+0.7% with respect to 2017)," says the INE website.

Building rehabilitation works, including refurbishment, extensions and reconstruction of homes, grew by 11.7% in annual terms, with a weight of 25.3% in 2018 (26.5% in 2017). "The number of licensed homes (28,321) increased by 30.3% over the previous year (+19.0% in 2017). The number of new homes built as family residences was 20,205, 38.9% more than the previous year (+24.5% in 2017)," explains the institute.

Completed projects grew by 19%

The data revealed by Statistics Portugal also allow us to conclude that, in terms of finished works, there has been a 19% increase in the number of completed buildings compared to the previous year, which corresponds to 13,483 buildings, the majority of which are new (73.6%). Residential buildings represent 72.2% of the total number of completed buildings.

"The number of completed homes (15,570) increased by 36.3% over the previous year (+13.1% in 2017). Finished rehabilitation works grew by 10.6% (2.6% in 2017), and their relative weight of the total decreased by 2% to 26.4% in 2018," says the INE, pointing out that, by type of work, new construction works took the longest to complete (22 months), compared with refurbishment works (11 months).

Rents in Portugal are 9.3% more expensive

In the rental market, the INE revealed that the average rental value of the 77,723 new family long-term housing rental contracts signed in 2018 in Portugal was 4.80 euros/m2, which is 0.45 euros/sq ft, 9.3% more than in the same period last year.

"The value of rents was higher than the national value in the Metropolitan Area of Lisbon (7 euros/m2 or 0.65 euros/sq ft), the Autonomous Region of Madeira (5.84 euros/m2 or 0.54 euros/sq ft), the Algarve (5.58 euros/m2 or 0.52 euros/sq ft) and the Metropolitan Area of Oporto (5.07 euros/m2 or 0.47 euros/sq ft)," explains the INE.

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