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Reflecting the significant monthly increases seen throughout this year, residential sale prices in Portugal (Mainland) accumulated a year-on-year increase of 21.1% in August, an unprecedented level of appreciation in the national market within the current series of the Confidencial Imobiliário Residential Price Index, which follows the dynamics of transaction prices since 2007. Since the beginning of the year, residential prices have risen more than 1.0% per month, reaching monthly variations of 2.5% twice, in May and July. August consolidated the strong monthly appreciation trend, registering a 1.7% increase over July.

In national terms, the previous valuation peak was around 17.5% and occurred just before the pandemic broke out. Although the first post-Covid year was marked by a slowdown in valuation, since March 2021 prices have resumed their upward trend, which has been especially marked throughout 2022.

Lisbon appreciation rate slows down…

This behavior hides the heterogeneity between the most expensive markets, led by Lisbon, and the markets with lower price levels, such as the outskirts of the Metropolitan Areas and other second cities in the country. While the latter markets have registered much stronger appreciation rhythms, the markets with more consolidated price levels have been presenting more restrained increases. This is the case of Lisbon, the price leader at a national level and where the year-on-year appreciation in the 2nd quarter of this year was 10.6%. This is a slowdown in comparison to the 13.5% increase seen in the capital city in the previous quarter, and is also one of the least robust increases both among the district capitals and in the context of the respective metropolitan region.

Average transaction prices in the country’s aggregate reflect well the appreciation dynamics. The average sale price of houses in Portugal in August, considering an accumulated period of three months, rose to 2,025 €/m2, remaining at a higher level than the 2,000 €/m2 that had been reached in the 4th quarter of 2021, according to data from the SIR – Residential Information System.

Source: Diario Imobiliário

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