Property prices in Portugal rise despite pandemic

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Property prices in Portugal rise despite pandemic

Property prices across Portugal have risen by 12%, according to market research published today, defying predictions of a downturn amid the country's state of emergency as the covid-19 virus continues to spread.

Imovirtual has reported that property asking prices across Portugal have experienced a 12% increase suggesting that, despite the ongoing covid-19 crisis, Portugal's housing market remains resilient.

The average asking price rose from €316,629 in March 2019 to €354,757 in the same period of 2020, Evora and Setubal contributed towards the highest growth in the average asking price announced, with Evora recording an increase from €177,814 to €215,045 while Setubal reported an increase from €243,869 to €294,817. Although both Evora and Setubal have recorded considerable growth in the space of 12 months, the two districts are not the most expensive destinations to live in.

Property asking prices across Portugal have experienced a 12% increase, suggesting that during the covid-19 crisis, Portugal’s housing market remains resilient."

Unsurprisingly, popular locations such as Lisbon and Algarve district, Faro are both areas with the highest average sale price, €573,021 and €454,030 respectively, while Castelo Branco (€119,947) and Beja (€130,719) are destinations with the lowest property prices.

Portalegre, near the Spanish border, experienced the largest decrease in the average property prices in Portugal, reporting a 12% reduction as opposed to last year's figures. Although prices of houses have dropped, Portalegre possesses the highest average price growth in rental properties with a 26% increase since last year (now offering an average of €390 per month).

House prices in Portugal have evidently increased since 2019, positioning the nation at a great advantage during the first quarter of 2020. However, although house prices have risen, contrary to the increase in sales price, the average price of rental properties has declined by 8% in comparison to this time last year.

Lisbon and Porto, the two largest cities situated in Portugal, attain the highest average lease price, €1,595 and €1,156 per month respectively, while the districts with the lowest announced average price for rent are Guarda and Castelo Branco, total at an average of €366 and €387 per month. Faro and Braganca reported the largest percentage reduction regarding average announced prices for rent, marking a decrease of 26% (€838) and 22% (€393) respectively.

Upward
Since the vast number of reported cases of covid-19 in Europe during January, lockdown measures and financial uncertainty have completely transformed public spending habits and behaviour. Due to the persistent spread of the virus, the potential of a global housing crisis has been a topic of conversation amongst numerous nations. Portugal has however noted an increase in asking prices of properties since February 2020, despite the intensity of the global pandemic.

Within a month, the average asking price has increased by 1%; the average asking price in February being €234,038 and in March €236,399 - a price difference of €2,361. The capital Lisbon reported that in February 2020 the average asking price was €563,469, meaning that average asking prices in Lisbon during March increased by a total of €9,552.

Similarly, Porto witnessed a notable increase with average asking prices totalling at €308,013 in February compared to €318,027 in March; a striking increase of €10,014. Districts such as Setubal, Faro and Brago also experienced an increase in asking prices since February 2020, validating that the housing market in Portugal continues to present strong figures, regardless of the current situation with covid-19.

Regarding the rental market, Imovirtual reports a moderate increase in prices per month since February 2020. Average rent prices in the nation equalled to €655, compared to March's €660. Locations such as Lisbon and Braga noted an increase in rent prices, marking a growth of 2.4% (€1,595) and 3.4% (€763) respectively.

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Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.