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Buying a house in Portugal was 2.2% more expensive between April and June

12 district capitals saw the prices of homes for sale rise. Lisbon and Porto are part of the list.

Home sales are falling in Portugal, as are requests for mortgage loans, given the sharp rise in interest rates and the fall in purchasing power, due to high inflation. But the imbalances between supply and demand persist, at a time when increasing the supply of affordable housing in the country is the Government's main objective with the More Housing programme, even to balance market prices, which are stubbornly rising. That's exactly what the idealista data shows: the prices of houses for sale in Portugal rose by 2.2% in the second quarter of the year compared to the previous quarter. And this is a visible reality in almost all of Portugal, as 12 district capitals saw the cost of housing to buy increase, including Lisbon (3.1%) and Porto (2.4%).

Although at the start of 2023 the prices of houses for sale remained stable, in the second quarter, houses became more expensive again. So much so that buying a house in Portugal cost €2,536 per square meter (euros/m2) at the end of June this year, taking into account the median value, according to the idealista price index. In relation to the annual variation, house prices in Portugal rose by 6.5%.

Prices of houses for sale rise in 12 district capitals

Taking into account 20 Portuguese district capitals, it appears that the prices of houses to buy rose in 12 cities in the second quarter of 2022 compared to the previous quarter. Leading the climbs is Viana do Castelo (17.2%), followed by Vila Real (12.1%) and Faro (11%). Followed by Évora (9.7%), Coimbra (6%), Funchal (3.6%), Lisbon (3.1%), Portalegre (2.9%), Setúbal (2.7%), Porto (2.4%), Viseu (1.2%) and Aveiro (0.9%).

On the other hand, there was also a decrease in the values of houses for sale in eight district capitals. The most significant drop in house prices was registered in Guarda (-7.4%), followed by Ponta Delgada (-2.4%), Castelo Branco (-2.2%), Santarém (-1.7%) , Bragança (-1.3%), Beja (-1.2%), Leiria (-0.9%) and Braga (-0.8%).

Lisbon continues to be the most expensive city to buy a house: 5,351 euros per square meter (euros/m2). Porto (3,413 euros/m2) and Funchal (2,943 euros/m2) occupy the second and third places, respectively. Among the district capitals with the highest prices for houses for sale are Faro (2,921 euros/m2), Aveiro (2,501 euros/m2), Setúbal (2,307 euros/m2), Évora (2,211 euros/m2), Viana do Castelo (1,850 euros/m2), Coimbra (1,843 euros/m2), Ponta Delgada (1,718 euros/m2), Braga (1,702 euros/m2), Vila Real (1,336 euros/m2), Viseu (1,334 euros/m2) and Leiria (1,309 euros/m2).

The cheapest cities to buy a house are Portalegre (717 euros/m2), Guarda (731 euros/m2), Castelo Branco (826 euros/m2), Bragança (867 euros/m2), Beja (934 euros/m2) and Santarém (1,098 euros/m2).

More expensive homes for sale in most districts and islands

Also looking at the districts and the Portuguese islands, it is clear that houses are once again more expensive in most territories. The biggest rises in the prices of houses to buy were observed in Castelo Branco (12.9%), Beja (10%), Viana do Castelo (9.9%), Coimbra (8.3%), Viseu (6.3 %) and Vila Real (5.1%),

With rises in house prices for sale of less than 5% between the second quarter of 2023 and the previous quarter are the island of Madeira (4.2%), Porto (4.2%), island of Porto Santo (3.8 %), Faial island (3.6%), Terceira island (3.5%), Setúbal (3%), Portalegre (3%), Leiria (2.8%), Faro (2.3%), Bragança (1.5%), Lisbon (1.2%), Pico island (1.2%), Santarém (1.1%) and Aveiro (0.9%).

In Braga (0.1%) and on the island of São Miguel (-0.2%) house prices were practically stable between these two moments, shows the idealista index. On the other hand, houses became more affordable in Évora (-23.7%), on the island of São Jorge (-6.4%) and in Guarda (-2.4%).

The ranking of the most expensive districts to buy a house is led by Lisbon (3,881 euros/m2), followed by Faro (3,174 euros/m2), Madeira Island (2,570 euros/m2), Porto (2,503 euros/m2), Setúbal ( 2,399 euros/m2), island of Porto Santo (1,927 euros/m2), Aveiro (1,673 euros/m2), Braga (1,529 euros/m2), Leiria (1,515 euros/m2), island of São Miguel (1,509 euros/m2 ), Viana do Castelo (1,465 euros/m2), Évora (1,442 euros/m2), Coimbra (1,433 euros/m2), Pico island (1,296 euros/m2), Faial island (1,262 euros/m2), island of São Jorge (1,119 euros/m2) and Terceira island (1,109 euros/m2).

The cheapest prices to buy a house can be found in Guarda (654 euros/m2), Portalegre (663 euros/m2), Castelo Branco (858 euros/m2), Bragança (876 euros/m2), Vila Real (975 euros /m2), Viseu (998 euros/m2), Beja (1,044 euros/m2) and Santarém (1,068 euros/m2).

Source: Idealista


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