As expected, house prices grew exponentially post-COVID. In the past year, house prices have increased by 13,8% in Portugal. This is a large contrast to the growth seen last year of 5%. In January of 2022, the average selling price for a house reached over €2000/m2. Areas that had previously not seen much growth and were considered affordable have also seen a sharp increase.
Experts argue this price increase is due to an increase in people looking to purchase a house and a lack of houses available, as well as the COVID-19 pandemic. The increase in house purchases has contributed to the rise in prices, as around 60,000 purchases were made between November and January, a 9% increase from the three months prior.
The councils that grew the most in their house valuations were Palmela, Mafra, and Sintra, reaching over 20% price increases. The areas of Aveiro, Braga, and Vila do Conde also saw a large increase, areas that were considered affordable.
It seems that purchasing real estate in Portugal remains a safe investment as homeowners face large returns on their investments in a growing market. Still, make sure to seek financial advice from a professional if you are looking to purchase property in Portugal. Buying a home could potentially even land you permanent residence or even citizenship if you are eligible to apply for a Portugal Golden Visa.
Most Expensive Places to Buy a House in Portugal
Cheapest Places to Buy a House in Portugal
Rental prices have also increased, making it more expensive than ever to rent a house in Portugal. In the past month alone, rental prices increased by 0.7%, and by 1,8% in the last 3 months, according to Idealista. The largest monthly increase in rental prices occurred in Coimbra (6,4%), Braga (4,5%), Viseu (3,1%), Lisboa (1,7%), São Miguel island (1,1%), and Porto (0,5%).
Most Expensive Places to Rent a House in Portugal
- Lisbon (€13/m2)
- Porto (€10,1/m2)
- Faro (€9,8/m2)
- Madeira (€9,2/m2)
- Setubal (€9/m2)
- Coimbra (€7,5/m2)
- São Miguel (€7,1/m2)
Cheapest Places to Rent a House in Portugal
- Vila Real (€4,5/m2)
- Viseu (€5/m2)
- Santarem (€5,2/m2)
- Castelo Branco (€5,8/m2)
- Viana do Castelo (€6,2/m2)
For more information on how to buy a house in Portugal, take a look at our International Guide to Real Estate in Portugal. From an overview of the property market, to where to buy a house, property taxes, and obtaining Portuguese residency, our guide goes into every single detail.
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