Edition 1476
26 May 2018
Edition: 1476

Read this week's issue online exactly as it appears in print.

Twitter

Portugal property boom continues

by Brendan de Beer, in News · 01-02-2018 13:55:00 · 2 Comments

Official figures out this week have revealed that property prices across the country have continued remarkable growth, with the real estate market showing no signs of slowing down. After figures from Portugal Statistics (INE) revealed that average property prices had climbed once again during the third quarter of 2017, credit rating agency DBRS followed by saying Portugal had recorded the second biggest growth in property prices out of Europe’s top real estate investment locations.

Portugal property boom continues

According to its latest ‘Illustrative Insight’ report, DBRS said Portugal was among a group of nations which had shown “the most notable improvements” in property prices since the economic slowdown a decade ago.
Growth in Portugal was placed at ten percent, and was only behind that of Ireland, where prices had climbed by 12 percent. However, home owners in Ireland, as in Spain, are still plagued by negative equity.
In its report, DBRS said most European housing markets have recently been on an upward trend, supporting a strong recovery from the dramatic collapse seen in many markets over the past ten years.
Spain meanwhile saw growth of seven percent, while the UK is said to be “currently facing a challenging environment with the full impact of Brexit yet to be felt and London showing preliminary signs of a slowdown.”
The only country still in decline in Europe is Italy, where the housing market has shrunk by one percent year-on-year.
On a regional level, Lisbon continues to be where the cost of real estate is the highest, according to the INE, with the cost per square metre rising to €2,315 during the third quarter of 2017.
The capital is followed by Cascais, where property is valued at €1,893/m2, while Loulé in the Algarve comes a close third with €1,704/m2. Overall, three of the top six most expensive areas are in the Algarve, with Lagos in at fourth (€1,619/m2) and Albufeira (€1,523/m2) coming in just behind Oeiras (€1,572/m2).
Overall, properties in Lisbon, the Algarve and Madeira are all priced above the national average.
When focusing uniquely on residential property, the Algarve overtakes Lisbon, with housing in the southern Portugal region costing an average of €1,348/m2, as opposed to €1,242/m2 in the capital.
In major cities, housing prices soared, with a home in Lisbon now 15.5 percent more expensive than it was towards the end of 2016. Porto meanwhile also saw the cost of residential properties rise 14.1 percent in the space of just 12 months.
The price of apartments in the Algarve went up by 8.2 percent, while villas increased by 6.8 percent, in comparison to 5.3 percent and 4.9 percent, respectively, the year before.
Nationally, the average price for a square metre of floor-space was €1,127.
The tendency for growth in prices in the Algarve seems to have gained pace towards the end of last year, as in December the cost per square metre of an apartment was fixed at €1,456, and that of a villa at €1,435/m2.
According to a separate report, buying property in the Algarve is, according to bank evaluations, now 25 percent more expensive than anywhere else in the country.
This follows figures from the Association of Estate Agents in Portugal (APEMIP) that prices being catapulted to pre-crisis levels, sales as a whole were up by between 25 and 30 percent in 2017. Overall, more than 400 properties were sold every day last year.”APEMIP President Luís Lima explained that his association had anticipated these highly positive figures at the beginning of last year, and current projections “allow us to forecast that the real estate market will grow once again in 2018.”

Comments

These prices are not real. The average price of housing in Lisbon in April 2018 is €4,000/m2, with lots of properties selling for as much as 10,000/m2.
by Ana Maria Burnier from Lisbon on 13-04-2018 01:29:00
Why that photo? Has nothing to do with Portugal property boom.
by JOAO from Porto on 24-02-2018 05:54:00

Interactive Topics, send us your comments/opinion on this article.


Please enter the letters as they are
shown in the image.
Letters are not case-sensitive.
Edition 1476
26 May 2018
Edition: 1476

Read this week's issue online exactly as it appears in print.

Twitter

Pub

  • Land and Houses
  • Cris Piessens
  • Abacoz
  • Projection Dreams
  • International Algarve Fair 2018
  • Veronica Pisco Lawyer
  • Malo Clinic
  • R.C. Brown
  • SOS Sky Digital TPN Banner
  • Toldolanda
  • Linen Etc
  • Blacktower
  • Nobel International School
  • Intermarche
  • Audiocare
  • Wellness Dreams
  • Intasure