House prices in Portugal rise 13.3%

By Kim Schiffmann, in Business · 17-01-2020 01:00:00 · 6 Comments
House prices in Portugal rise 13.3%

In 2019, house prices in Portugal rose 13.3 percent from a year earlier to €2,028 per square metre (m2), according to the Idealista price index. This is the first time the €2,000 per m2 barrier has been breached.

All regions in Portugal saw price increases in annual terms with the exception of Alentejo where they fell by 0.4 percent.
Highlighted in the Idealista list was the Northern Region and Lisbon Metropolitan Area, which saw both prices grow 14.7 percent. This was followed by the Autonomous Region of Madeira (8.1 percent), Algarve (7.3 percent), the Autonomous Region of the Azores (1.9 percent) and Centro (1.6 percent).
Lisbon Metropolitan Area with €2,941 per m2 remains the most expensive region, followed by the Algarve where it costs €2,209 per m2, the North (€1,658 per m2) and Madeira (€1,556 per m2). At the opposite side of the table with the cheapest regions are, in this order, the Autonomous Region of the Azores (€918 per m2), Alentejo (€1,017 per m2) and Centre (€1,045 per m2).

Prices rose in 20 districts - out of 23 analysed, including the islands of Madeira and the Azores - with the largest cost increases in 2019 taking place in Porto (16 percent), Setúbal (15.6 percent), Bragança (12.7 percent), Porto Santo Island (12.4 percent) and Lisbon (11.5 percent). In the case of Coimbra, the increase in the last year was 8.3 percent.
On the other hand, housing prices fell in Portalegre (-18 percent), Santarém (-3.6 percent) and Viana do Castelo (-1.5 percent).
The ranking of the most expensive districts continues to be led by Lisbon (€3,276 per m2), followed by Faro (€2,209 per m2) and Porto (€1,918 per m2). The cheapest prices are to be found in Portalegre (€635 per m2), Guarda (€673 per m2) and Castelo Branco (€683 per m2).
Prices rose in 17 district capitals of the country, with Aveiro (22.5 percent) topping the list. This is followed by Setúbal (19.9 percent), Ponta Delgada (13.5 percent), Braga (13.1 percent) and Coimbra (11.6 percent). In Lisbon and Porto the increase was 10.4 percent and 6 percent, respectively.



Comments:

Rising home prices is a good way for average people to make money a home is also an investment. The rising real estate market is a good thing. The comments here make it sound as if there is a finite number of housing units and no more can be built. This is incentive for builders to build new units for all income buyers. This puts people to work so they have more money to buy a home.

By peter from USA on 23-01-2020 08:14

@Rodwell, the property market isn't driven by Portuguese on average wages. Foreign buyers and investors are having an increasingly significant role, helping to push prices higher. The fact that the average Portuguese worker can no longer afford to buy in certain parts of the country is irrelevant to the debate and doesn't mean the market recovery of recent years isn't sustainable. Just because prices increase doesn't mean they need to fall, or will fall. Increasing prices are a sign of growing demand and shortage of supply.

Amazed at how few people understand how few people understand how markets function.

By Jonny from Porto on 19-01-2020 12:38

A utopia e incompetência continuam a guiar as prioridades deste governo! Não me digam que é com situações como esta que querem cativar o regresso de emigrantes qualificados? Vendem o país à estranja e depois querem-nos a nós para servir a oligarquia e tapar buracos!

By Tony Fernandes from Other on 18-01-2020 04:53

Yes, you are right . The problem is, 80 % of the buyers are from outside Portugal, so the wages on Portugal have no effect on the house prices. It's totally unregulated.
Soon, no Portuguese people will own anything in their own country, and it's a shame .

By Tom jones from Porto on 18-01-2020 08:52

Yap is completely absurd the way things are going over in Portugal, when the minimum wage is 600euros how in the hell people can even afford to rent a place to live. This is focus on the international market for people from abroad to buy property, is so sad a small country being left to the sharks.

By Hugo Clemente from UK on 18-01-2020 04:12

This rise in prices are not viable. The real estate agencies must take a lessons learnt from the 2008 property bubble in the USA.

This makes property unaffordable to many portuguese who earn minimum wage.

By Rodwell van Wyk from Other on 17-01-2020 03:14
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