Prices in Lisbon’s Historic Centre Reach New High

19 March 2018

In the second half of 2017, the price of houses in the historic centre of Lisbon grew by 5.9% compared to the first semester, to a high of 4,472 euros/m². Nevertheless, the figure represents a slowdown in the pace of growth.

The figures come from the Lisbon Historic Centre Price Index, compiled since 2008 by Confidencial Imobiliário in collaboration with the Lisbon City Council. The index covers the parishes of Misericórdia, Santa Maria Maior and São Vicente, accounting for the central area undergoing urban rehabilitation in Lisbon. The figures are based on the data stemming from the council’s pre-emptive rights over the ARU (urban rehabilitation area).

Despite having reached a new high, the growth was the lowest of the last eight semesters. The slowdown also influenced the year-on-year comparison with 2016, which, although significant (21.1%), was lower than in previous semesters.

Ricardo Guimarães, director of CI, explained that “housing prices in this area have significantly accelerated in recent years. After prices reached a nadir in the first half of 2013, the market underwent a rapid increase in prices, reaching a year-on-year increase of 31% in the first half of 2016.”

On the other hand, he noted that “the elevated pace of increases, considering current price levels, will naturally tend to soften, while still maintaining steady growth, as demonstrated in the second half of 2017.”

The prices of houses sold in this area of the city grew 67% in cumulative terms since 2008. However, in the period between the first half of 2010 and the first half of 2013, prices fell by 24.2%, reaching a low at the end of the period. Prices have already increased by 110% since the market bottomed out.

Original Story: Vida Imobiliária – Ana Tavares

Translation: Richard Turner