According to the INE (Instituto Nacional de Estatística) real estate prices in Portugal continue to rise, with the median price of dwellings reaching 1,494€ per square meter in the second quarter of 2022. This represents a year-on-year increase of 17.8%, an acceleration from the previous quarter's rate of 17.2%.
The Algarve and the Área Metropolitana de Lisboa are the sub-regions with the highest prices, with median prices of 2,358€ per square meter and 2,076€ per square meter respectively. These areas also had the highest prices for both national and foreign buyers.
While prices in Lisbon decreased by 6.1% in the second quarter of 2022, there was an increase in the year-on-year rate of change in six of the 11 municipalities within the Lisbon Metropolitan Area, with Loures seeing the largest increase at 8.8%. In the Porto Metropolitan Area, four out of six municipalities saw an increase in the year-on-year rate of change, with Porto and Matosinhos seeing the largest increases at 9.2% and 5.3% respectively.
An analysis of the relationship between house purchase prices and rents of new rental contracts suggests a relative overvaluation of rents in most municipalities within the metropolitan areas and a relative undervaluation of rents in most municipalities of the Algarve. The trend in the real estate market also shows a relative growth in the transaction market compared to the rental market, with this trend being seen in most of the municipalities of the Lisbon Metropolitan Area and the Algarve, but not in 10 of the 17 municipalities of the Oporto Metropolitan Area.
Overall, Realestate prices in Portugal is showing strong growth, with prices increasing across the country and particularly in the Algarve and the Área Metropolitana de Lisboa. However, there are also areas, such as the municipalities within the Porto Metropolitan Area, where prices are not increasing as quickly. Additionally, the analysis of the relationship between house purchase prices and rents suggests that the rental market may be overvalued in some areas, while being undervalued in others.
Portugal 2022: Median value of sales per sqm
ine.pt - Statistics Portugal