idealista shares that house sales in Portugal fell throughout 2023, largely due to high-interest rates on housing loans and the loss of purchasing power and savings due to inflation. However, the supply of housing continues to be much lower than demand, contributing to the prices of houses for sale continuing to rise, albeit at a slower pace.

This is exactly what the idealista price index reveals: the prices of houses to buy in Portugal rose 0.8% in January compared to the previous month, reaching 2,582 euros per square meter (euros/m2) in median terms. This is a scenario visible across almost the entire Portuguese territory, as houses became more expensive in 9 district capitals, between December and January, with Leiria leading the rises (2%). In relation to the annual variation, house prices rose 6%.

Price of houses for sale remains stable in 6 district capitals

Prices of houses to buy in November rose in 9 district capitals, with Leiria (2%), Santarém (1.9%) and Lisbon (1.4%) topping the list. Followed by Funchal (1.2%), Porto (1.2%), Braga (0.8%), Faro (0.8%), Coimbra (0.8%) and Viseu (0.6%) .

In Castelo Branco (0.5%), Aveiro (0.5%), Setúbal (0.4%), Ponta Delgada (0.3%), Évora (-0.1%) and Viana do Castelo (- 0.3%) house prices for sale remained practically stable during this period. On the other hand, prices fell in Guarda (-2.9%), Beja (-2.9%) and Bragança (-0.7%).

Lisbon continues to be the city where it is most expensive to buy a house: 5,516 euros/m2. Porto (3,494 euros/m2) and Funchal (3,228 euros/m2) occupy second and third place, respectively. Next are Faro (2,920 euros/m2), Aveiro (2,506 euros/m2), Setúbal (2,268 euros/m2), Évora (2,010 euros/m2), Viana do Castelo (1,884 euros/m2), Ponta Delgada (1,881 euros /m2), Coimbra (1,839 euros/m2), Braga (1,776 euros/m2), Leiria (1,442 euros/m2) and Viseu (1,410 euros/m2).

The most economical cities to purchase housing in the country are Guarda (784 euros/m2), Castelo Branco (867 euros/m2), Bragança (924 euros/m2), Beja (929 euros/m2) and Santarém (1,208 euros/m2 ).

Most expensive houses in 18 districts/islands

Analysing the 25 districts and islands with representative samples, it becomes clear that houses for sale became more expensive in 18 territories between January compared to December. It was in Castelo Branco where the prices of houses rose the most (4%), followed by the island of Santa Maria (3%), the island of Faial (2.9%) and the island of Terceira (2.5%).

The list of territories that saw a greater increase in the price of homes for sale continues with Vila Real (2.3%) and São Miguel Island (2%). With house price increases of less than 2% are Guarda (1.5%), Porto Santo island (1.4%), Porto (1.4%), Viseu (1.4%), island Madeira (1.3%), Aveiro (1%), Faro (1%), Leiria (0.9%), Santarém (0.9%), Coimbra (0.9%) and Braga (0.6 %).

On the other hand, the prices of housing remained stable during this period in Setúbal (0.2%), Pico island (0.2%), Viana do Castelo (-0.1%), Bragança (-0 .2%), Beja (-0.3%) and Portalegre (-0.4%). On the other hand, house prices only fell in Évora (-6.5%).

As expected, the ranking of the most expensive districts to buy a house is led by Lisbon (3,949 euros/m2), followed by Faro (3,283 euros/m2), Madeira Island (2,924 euros/m2), Porto (2,551 euros/ m2), Setúbal (2,450 euros/m2), Porto Santo island (2,286 euros/m2), Aveiro (1,685 euros/m2), São Miguel island (1,670 euros/m2), Leiria (1,572 euros/m2), Braga (1,511 euros/m2), Viana do Castelo (1,455 euros/m2), Santa Maria island (1,447 euros/m2), Coimbra (1,403 euros/m2), Pico island (1,364 euros/m2), Faial island ( 1,340 euros/m2), Évora (1,235 euros/m2), Terceira island (1,182 euros/m2) and Santarém (1,136 euros/m2).

The most economical prices to purchase a home are in Guarda (714 euros/m2), Portalegre (718 euros/m2), Bragança (870 euros/m2), Castelo Branco (901 euros/m2), Vila Real (963 euros /m2), Beja (1,051 euros/m2) and Viseu (1,081 euros/m2).

Most expensive homes for sale in almost every region

In January 2024, prices of houses for sale increased in all regions of the country, with the exception of Alentejo (-1.4%). Leading the price rises is the Autonomous Region of the Azores (2.9%), followed by the North (1.4%), Autonomous Region of Madeira (1.3%), Metropolitan Area of ​​Lisbon (1. 1%), Center (1%) and Algarve (1%).

The Lisbon Metropolitan Area, with 3,579 euros/m2, continues to be the most expensive region to purchase housing, followed by the Algarve (3,283 euros/m2), the Autonomous Region of Madeira (2,914 euros/m2) and the North region (2,134 euros /m2).

On the opposite side are the Center (1,414 euros/m2), the Autonomous Region of the Azores (1,481 euros/m2) and Alentejo (1,503 euros/m2) which are the cheapest regions to buy a house.