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Luxury Housing Prices Hit by the Pandemic

19 October 2020 – The Portuguese luxury real estate market has seen prices rise inexorably over the last few years, but the pandemic is starting to take its toll. While initial asking prices are holding up, actual sales prices are trending downwards. Lockdowns and fears of air and international travel are keeping international buyers at bay and placing downward pressure on what had been relatively high prices.

Data published by Confidencial Imobiliário points to price decreases for luxury homes in central Lisbon and also in resorts, as demand by international buyers fell by about 50% in the first half of 2020. In the parish of Santo António, for example, the average price of luxury housing stood at roughly €12,000/m2 before the start of the pandemic. Now, however, sales prices of the most expensive houses have below €7,500/m2, a drop of nearly 40%.

Housing prices in luxury resorts, many in the Algarve, have also seen a similar decline. Buyers were paying upwards of €11,600/m2 at the end of 2019, compared to just over €8,000 during the first semester of this year. Housing for the middle-class, however, has held up recently, with no decline expected due to the pandemic.

Original Story: Visão

Translation/Summary: Richard D. Turner