Continued Strong Growth in Portugal’s Housing Market

4 October 2018

In the first seven months of 2018, Portugal’s municipalities’ issuance of permits for new construction and rehabilitation of residential buildings grew by 22.6% year-on-year.

According to the Statistical Housing Synthesis released today by AICCOPN, the municipalities issued a total of 8,620 licenses. Licensing for new construction of residences increased by 38.3%, year-on-year, for a total of 11,404 houses.

New loans by financial institutions granted for the purchase of housing registered a year-on-year increase of 26.4% to 5.69 billion euros in the year to July.

The total outstanding stock of loans granted by financial institutions to companies in the construction and real estate sector registered, however, a year-on-year fall of 4.9% in July.

The synthesis also noted that the average value of residential bank valuations rose to 1,187 euros per square meter in July, an increase of 6.3%, year-on-year. The price per square meter of apartments increased by 6.7% to 1,252 euros/m2, while houses rose by 5.6% to €1,102/m2.

The Lisbon Metropolitan Area saw an increase of 26% in licenses for new builds in July. Of these, 70.8% have three-bedrooms or more, 23.6% have two-bedrooms, and 5.6% have less. Residential bank valuations in the region increased by 7.9% to 1,468 euros/m2 in July.

Original Story: Diário Imobiliário

Photo: Miguel Baltazar

Translation: Richard Turner