8 January 2019
The beginning of construction of a new complementary airport in the region of Lisbon should further accelerate prices in the local real estate market.
The price of homes in the municipalities of Montijo and Alcochete increased by more than 30% over the last two years, twice the pace seen in the rest of the country. The beginning of construction on the new complementary airport in the area should create further pressures on the real estate market in the area.
In 2016, the Portuguese government identified Montijo as a possible site for expanding the Lisbon area’s airport capacity. In early 2017, the government and ANA committed themselves to the area, in a decision they will formalise on Tuesday, with the signing of a memorandum of understanding that will define the financing model for the Lisbon airport expansion. Although housing prices in the area have been influenced by the same factors that have pushed up real estate prices throughout the country, the announcement of a new airport located in Montijo is certainly an additional one.
“Homes are gone back to the same price level as before the crisis. They are even more valuable than at that time. While that is not entirely due to the airport, the announcement certainly contributed to it,” the only real estate agent in Samouco, the parish where the airport is to be built, told TSF.
Data from the National Institute of Statistics (INE) on the median sales value per square meter for family housing corroborate the real estate agent’s analysis.
From the first quarter of 2016 to the second quarter of 2018, the last period for which these data are available, housing sales prices in Portugal increased by 16.7% to a median value of 969 euros per square meter. In the various municipalities on the south bank of the Tagus, prices are generally lower than that, but the growth rate is faster, especially in the counties of Montijo and Alcochete (home to the parish of Samouco).
From the first quarter of 2016 to the second quarter of 2018, the price of homes in Montijo rose by 30.6% to 956 euros per square meter. In Alcochete, prices soared 35.5% in this period, to 1,263 euros per square meter. These values are considerably higher than in the rest of the region. In Setúbal, for example, prices increased by 25% in this period.
With the start of construction on the airport in Montijo, growth will tend to accelerate further. “Regarding real estate sales, we have already noticed greater interest in Samouco and Montijo, due to the airport’s arrival. Once [the memorandum] is signed, giving certainty that the airport will come, more doors will open,” the same agent told TSF.
Original Story: Economia Online – Rafaela Burd Relvas
Translation: Richard Turner