According to new information released by the National Institute of Statistics (INE) today, the median price of property in Portugal climbed by 14.4% from 2021 to 2022, reaching 1,484 euros per square meter (€/m2).
According to INE’s research, “taking sales during the 12 months between January and December 2022 as a reference, the median price of family housing in Portugal was 1,484 €/m2,” which is a 2.6% increase over the year that ended in the previous quarter and a 14.4% increase over the year that concluded in the same quarter.
According to the statistics agency, the median home price in the sub-regions of Algarve (2,339 €/m2), Lisbon Metropolitan Area (2,096 €/m2), Porto Metropolitan Area (1,607 €/m2), and the Autonomous Region of Madeira (1,571 €/m2) remained higher than the national average in the past year.
During the time period under consideration, there were 47 municipalities that had a median price that was more than the value at the national level. The majority of these municipalities were situated in the subregions of Algarve (14 out of 16) and rea Metropolitana de Lisboa (17 out of 18).
The municipality of Lisbon reported the highest price in the nation at 3,872 €/m2, while Cascais (3,473 €/m2), Oeiras (3,001 €/m2), and Loulé (2,910 €/m2) all recorded prices that were greater than 2,750 €/m2.
According to the information provided by the INE, pricing differences between municipalities in the Lisbon Metropolitan Area and the Algarve were more than 2,000 €/m2 on average.
In the previous year, Lisbon recorded the highest median home price among the 24 municipalities with more than 100,000 inhabitants. This was true for both categories of buyer’s tax domicile: 3,768 €/m2 for purchasers with tax domicile in Portugal, and 5,367 €/m2 for buyers with tax domicile in another country.
In addition to Lisbon, Cascais, Oeiras, and Porto concurrently posted median prices of family residences that were over 2,500 euros per square meter in transactions involving purchasers with tax residency in Portugal, and above 3,500 euros per square meter in transactions involving buyers from outside of Portugal.
According to the INE, the municipalities of Lisbon, Cascais, Oeiras, and Porto “were also distinguished for presenting the highest median prices, among the 24 municipalities with more than 100 thousand inhabitants, in the two categories of the institutional sector of the buyer considered.” This was the case in both categories of the buyer considered.
Within the Greater Lisbon Metropolitan Area, the towns of Vila Franca de Xira, Lisbon, and Loures displayed price differentials between institutional buyer sectors of more than 600 euros per square meter.
When just the fourth quarter of 2022 is considered, the median price of family home in Portugal was 1,500 €/m2, which represents an increase of 10.7% when compared to the same time in 2021 (+13.5% in the preceding quarter).
INE highlighted the price rises in Alentejo Litoral (+22.6%), Regio Autónoma da Madeira (+18.9%), Aveiro (+18.3%), and Médio Tejo (+17.3%), among other NUTS III sub-regions, where the median home price rose year-on-year.
The four sub-regions that had the highest median home prices were the Algarve, the Regio Autónoma da Madeira, the rea Metropolitana de Lisboa, and the rea Metropolitana do Porto. These four sub-regions also had the highest values in both categories of buyer’s tax domicile.
In the metropolitan regions of Oporto and Lisbon, the price of transactions made by purchasers who had their tax domicile outside of the country was higher than the price of transactions made by buyers who had their tax domicile inside of the country by corresponding margins of 75.6% and 64.3%.
The data that were made public today also show that between October and December 2022, there was a deceleration in house prices in 14 of the 24 municipalities with more than 100 thousand inhabitants (12 in the third quarter of 2022), with the municipalities of Barcelos (-19.2 percentage points), Maia (-16.5 percentage points), and Matosinhos (-11.6 percentage points) standing out as having decreases of more than 10 percentage points. In the area that makes up the municipality of Lisbon, the drop was 0.3 percentage points.
In the opposite direction, the rate of change from one year to the next increased in ten municipalities, with the most notable increases occurring in Santa Maria da Feira (+11.3 percentage points), Vila Franca de Xira (+7.8 percentage points), and Guimares (+7.7 percentage points), as well as the municipality of Porto, which recorded an increase of 0.8 percentage points.
