House prices rose 1.6% in Portugal in the first quarter of 2020

Lisbon is the most expensive city in the country to buy a house (4,711 euros per m2), according to idealista's price index.

Gtres
Gtres
15 April 2020, Redaction

House prices in Portugal rose 1.6% in the first quarter of 2020 compared to the previous quarter, standing at 2,060 euros per m2. In annual terms, i.e. compared to the first three months of last year, the increase was 11.4%. This is data from the idealista price index. 

Coronavirus pandemic

César Oteiza, general director of idealista Portugal, highlights that "idealista's report studies the evolution of house prices in the first quarter of the year, so the national emergency situation is not yet reflected in these figures". He adds that "in the period under analysis, the data contemplates a slight increase in the Portuguese market, and from now on we will probably see decreases in house prices in Portugal, although the scenario after the period of coronavirus confinement is still one of total uncertainty. Everything will depend on the duration and scale of the crisis generated by the pandemic, along with the capacity of the Portuguese economy to recover".

Regions

All regions saw a quarterly price increase with the exception of the Central region, which shows a decrease of 0.6%. The North stood out, which saw prices rise by 3.6%. Following, in this order with their respective price increases, are Alentejo (3%), Lisbon Metropolitan Area (2.2%), the Algarve (2%) and the Madeira Autonomous Region (0.6%).

The Metropolitan Area of Lisbon, with prices at 3,007 euros per m2, continues to be the most expensive region, followed by the Algarve (2,252 euros per m2), the North (1,717 euros per m2) and the Autonomous Region of Madeira (1,566 euros per m2). On the opposite side of the table, we can find the Central region (1,040 euros per m2) and Alentejo (1,047 euros per m2).

Districts

Of all the districts analysed, the largest increases took place in Évora (6%), Porto (4.6%), Setúbal (4.4%), Viseu (4.4%), Braga (3.4%) and Vila Real (3.1%). In the case of Coimbra and Lisbon, the increases were 2.6% and 1.4%, respectively. 

On the other hand, prices decreased in Leiria (-5.9%), Guarda (-3.8%), Beja (-1.6%) and Bragança (-0.1%).

It should be noted that the ranking of the most expensive districts continues to be led by Lisbon (3,321 euros per m2), followed by Faro (2,252 euros per m2) and Porto (2,005 euros per m2). The most economical prices can be found in Guarda (647 euros per m2), Castelo Branco (696 euros per m2), Portalegre (727 euros per m2) and Bragança (749 euros per m2). 

District capital cities

Prices increased in 16 district capitals, with Vila Real (9.4%) leading the list. This capital is followed by Évora (7%), Castelo Branco (6.5%), Viseu (6%) and Viana do Castelo (5.5%). In Lisbon and Porto the increases were 2.3% and 1.8%, respectively. 

On the other hand, it was in Guarda where prices fell the most: 7.6%. Bragança (3.4%) and Aveiro followed, where the decrease was 1.9%. 

Lisbon is still the city where it is more expensive to buy a property with prices at 4,711 euros per m2. Porto (2,831 euros per m2) and Faro (1,892 euros per m2) occupy the second and third places respectively. The most economical cities are Guarda (632 euros per m2), Castelo Branco (737 euros per m2) and Bragança (739 euros per m2).

idealista's property price index

Starting with the report for the first quarter of 2019, the methodology for preparing this study was updated. After the incorporation of the idealista/data team in the idealista group, new calculation formulas were introduced that contribute to greater accuracy in the analysis of price evolution, particularly in small areas. 

By recommendation of the idealista/data statistical team, the formula for finding the average price in 2020 was updated: in addition to eliminating atypical advertisements and with prices outside the market, we calculated 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 those applied in other countries to obtain real estate data. 

We also include the "single-family homes" typology and discard all advertisements that are in our database and that have been there for some time without any kind of interaction by users. The 2020 report is still based on the offer prices published by idealista advertisers. 

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