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Housing Prices Increase by 30% in Portugal’s Interior

4 February 2021

Data published by Portugal’s National Institute of Statistics (INE) demonstrate variations in the behaviour of housing prices throughout the country. While price increases are moderating in larger cities, they are picking up pace in the interior.

The statistics show that the average value of homes sold reached €1,160 per square metre in the third quarter of 2020, equivalent to a 2% rise month-on-month and a 10.1% gain over the same period last year.

Even amid the Covid-19 pandemic, housing prices continue to be on an upward trend at a time when interest rates are at historically low levels, and supply is lower than demand. In the third quarter of 2020, the pace of growth in housing prices fell once again in several parts of Portugal.

Cities with over 100,000 inhabitants, and in Lisbon in particular, have seen housing prices fall in 10 of the 24 municipalities. On the other hand, house prices have risen in regions such as the Alentejo, North and Centre, including several parts of the country’s interior. INE’s results show that the average price increased by more than 20% in 25 municipalities, while there were another 32 municipalities where the increase was more than 30%.

Increases of more than 30% were seen in 10 municipalities in the Alentejo, another 10 in the North and eight in the Centre. A similar growth rate was also seen in three municipalities in the Azores and one in Madeira.

Original Story: Jornal de Negócios – Rafaela Burd Relvas

Translation: Richard Turner