House prices in Portugal grew by 7.7% last year
Currently, we are witnessing a gradual increase in house prices in Portugal, with a 7.7% increase recorded in August compared to the same period last year. The data revealed by Confidencial Imobiliário indicate that the summer period confirms the recovery in housing demand seen since spring and shows an increase in house sales. Ricardo Guimarães, director of Confidencial Imobiliário, states that, “The first months of the year were marked by relative instability. On the one hand, despite not rising, interest rates behaved more conservatively than expected and took a long time to fall. On the other hand, at the domestic level, there was an increase in uncertainty not only due to the current election situation but also, later, about how and when the new political measures for the sector would reach the market. This context ended up conditioning demand decisions, leading to the postponement of investments and hindering the recovery of demand.” Lisbon and Algarve prevail with the most expensive homes
In August, sales prices continued to increase, with an increase of 7.7% compared to the same period last year and 0.9% compared to the previous month, according to the Confidencial Imobiliário Residential Price Index. These figures exceed those of July, when annual growth was 7.5% and monthly growth was 0.1%, suggesting an acceleration in price increases.
Between June and August, the average value of homes was €2,456/m2. The Lisbon Metropolitan Area (AM Lisboa) leads as the most expensive region, with an average of €2,937/m2, followed by the Algarve, where the average price reached €2,882/m2. In the Porto Metropolitan Area (AM Porto), transactions occurred at an average of €2,372/m2.
In all regions of mainland Portugal, there was an increase in sales in the period analyzed, with growth of 3.2% in AM Lisboa (10,275 properties) and in the Algarve (2,500 properties), and 3.8% in AM Porto (5,800 properties), compared to the activity in the second quarter.
