Summary:
7.7% increase in house prices in Portugal compared to last year
Average cost now at €2,696 per m²
Ponta Delgada leads with an 18.9% increase
Most expensive city is Lisbon at €5,633 per m²
Most affordable cities include Guarda at €807 per m²
Real Estate Crisis Intensifies in Portugal
The real estate crisis in Portugal shows no signs of slowing down, with property prices for sale continuing to rise compared to last year.
In July, house prices in Portugal increased by 7.7% compared to the same month last year. According to the idealista price index, the average cost of buying a house reached €2,696 per square meter (m²). On a quarterly basis, prices rose by 2.8%.
Cities with the Highest Price Increases
Over the past year, house prices have surged in 18 district capitals, with Ponta Delgada leading the charge at 18.9%, followed by Leiria at 17.8% and Portalegre at 13.9%. Other notable cities include:
- Funchal (13.7%)
- Viseu (10.3%)
- Bragança (10.2%)
- Braga (10.1%)
- Guarda (10.1%)
- Castelo Branco (8.3%)
- Santarém (7.6%)
- Setúbal (6.5%)
- Lisbon (5.8%)
- Porto (4.9%)
- Coimbra (4.5%)
- Beja (3.6%)
- Faro (2.8%)
- Viana do Castelo (1.5%)
- Évora (1.4%)
Meanwhile, Aveiro (0.2%) and Vila Real (-0.4%) have seen stable prices during this period.
Most Expensive Cities to Buy a Home
Lisbon remains the most expensive city for homebuyers, with a price of €5,633 per m². Following behind are Porto (€3,593/m²) and Funchal (€3,389/m²). Other cities include:
- Faro (€2,979/m²)
- Aveiro (€2,554/m²)
- Setúbal (€2,417/m²)
- Évora (€2,179/m²)
- Ponta Delgada (€1,985/m²)
- Braga (€1,915/m²)
- Coimbra (€1,897/m²)
Conversely, the most economical cities are:
- Guarda (€807/m²)
- Portalegre (€835/m²)
- Castelo Branco (€869/m²)
- Beja (€959/m²)
- Bragança (€995/m²)
- Santarém (€1,229/m²)
District Analysis
In terms of islands and districts, the highest price increases occurred in:
- São Miguel (19.7%)
- Madeira (16.8%)
- Porto Santo (16.3%)
Other significant increases include:
- Terceira (14.4%)
- Portalegre (12.7%)
- Pico (10.7%)
Some areas, like Évora (-5.5%) and Viana do Castelo (-4.9%), experienced price declines.
Price Rankings
The ranking of the most expensive districts to buy a house is as follows:
- Lisbon (€4,117/m²)
- Faro (€3,414/m²)
- Madeira (€3,063/m²)
- Porto (€2,680/m²)
- Setúbal (€2,563/m²)
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