House Price Trends in Portugal's Major Cities
Property values escalate in 19 out of 24 major cities
The real estate market in Portugal is experiencing a surge, largely due to increased foreign investment, the booming tourism sector, and scarcity of housing. Let's dive into the latest house price trends in the country's major cities:
Slowing Down, but Still Up:
Despite a slowdown in Q4 2023 compared to the previous quarter, Santa Maria da Feira, Braga, Vila Nova de Gaia, Barcelos, and Maia still witnessed growth in house prices.
Leading the Pack:
The Madeiran capital was the frontrunner with prices skyrocketing by over 50%, reflecting a staggering 42 percentage point increase in median price per square meter compared to Q3. Gondomar saw a significant increase of more than 20%.
Cities above the National Average:
Guimarães, Barcelos, and Oeiras also recorded growth above the national average of 15.5%. Lisbon, Cascais, Oeiras, and Lagos all had values above 3,400 euros per square meter. Porto saw a 6.3% rise to 3,011 euros per square meter.
INE's Forecast:
According to the National Statistics Institute (INE), the median price of family accommodation in Portugal was projected to reach €1,777 per square meter in 2024, based on more than 151,000 sales recorded throughout 2023. This represented an increase of 10.3% compared to the previous year.
Price Differences Across Regions:
Greater Lisbon, Algarve, Autonomous Region of Madeira, Setúbal Peninsula, and Porto Metropolitan Area all recorded higher-than-average prices. A total of 54 municipalities surpassed the national median price, with many located in popular sub-regions like the Algarve, Greater Lisbon, Setúbal Peninsula, and Porto Metropolitan Area.
Top Selling Municipalities:
Lisbon had the highest number of family home transactions, with 8,300 sales, followed by Sintra, Vila Nova de Gaia, and Porto.
Enrichment Insight:Portugal's property market grew significantly, driven by foreign investment, a booming tourism industry, and a lack of housing supply. Key takeaways include inflation rates of 15.8%, prices in the Lisbon Metropolitan Area reaching €5,634 per square meter, and Alentejo being a more affordable option with prices around €1,025 per square meter.
- The real-estate market in Portugal's Algarve region might offer lucrative investment opportunities due to its growing popularity and comparatively lower house prices.
- News regarding Portugal's property market suggests a surge in house prices, with cities like Porto, Lisbon, and those in the Autonomous Region of Madeira showing significant growth that exceeds the national average.
- As foreign investors continue to pour capital into Portugal's finance industry, the focus on real-estate investing, particularly in cities like Lisbon and the Algarve, could provide attractive returns, considering the projected rise in house prices based on the National Statistics Institute's forecast.
