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House Prices Up By 5.5% in the Fourth Quarter of 2017

3 January 2018

Buying a home in Portugal is becoming more expensive every day. Housing prices rose by 5.5% in the fourth quarter of 2017 compared to the third – to 1,690 euros per square meter (m2), according to the idealista price index. As expected, Lisbon is the region where property is at its most expensive, with prices around 2,351 euros per square meter. The Portuguese real estate market closed the year on a high note: prices have risen throughout the country.

Regions

Every region witnessed a price increase compared to the third quarter of 2017. The regions with the most significant increases were in the North and Lisbon (7.4% and 5.4% respectively), followed by the Autonomous Region of Madeira, with an increase of 5%, and the Algarve, with a quarterly variation of 4.5%. On the lower side, we can find the Centre (0.4%) and Alentejo (2.9%).

Lisbon, with a price of 2,351 euros per square meter, remains the most expensive area to buy a home, followed by the Algarve (1,724 euros/sqm) and Madeira (1,352 euros/sqm). On the lower end are the Centre region (960 euros/sqm), Alentejo (1,128 euros/sqm) and the North (1,241 euros/sqm).

Districts

Compared to the third quarter of 2017, every district that was analysed saw prices rise in the last quarter of 2017. The most significant increases occurred in Porto (7.8%), Braga (7.5%), Guarda (5.9%) and Lisbon (5.5%). Prices in Portalegre remained stable in the quarter, and the increase in Santarém (0.1%) and Viana do Castelo (0.4%) was not significant.

The ranking of the most expensive districts continues to be led by Lisbon (2,796 euros/sqm). This is followed by Faro (1,724 euros/sqm) and Madeira (1,353 euros/sqm). The lowest prices can be found in Guarda (684 euros/sqm), Bragança (685 euros/sqm) and Portalegre (687 euros/sqm).

District capitals

In the period under review, between October and December, 14 district capitals saw an increase in housing prices. Braga led the climb among the larger cities, with 8.6%, followed by Faro (8.5%) and Porto (8.4%). On the other hand, Portalegre witnessed a price decrease of 1.9%, followed by Leiria and Santarém (0.7% in both cases).

It should be noted that Lisbon continues to be the district capital with the most expensive housing costing 4,079 euros/sqm. The capital city is followed Porto (2,256 euros/sqm) and Funchal (1,641 euros/sqm). In contrast, the district capitals with the lowest prices are Bragança (660 euros/sqm), Portalegre and Guarda (724 euros/sqm in both cases).

Original Story: Idealista

Translation: Richard Turner