Portugal's 2023 Housing Market Insights
In the second quarter of 2023, the median house price for property sales in Portugal reached 1,629 €/m2, reflecting a year-on-year growth rate of +9.0%, which marks an increase from +7.6% in the previous quarter. Among the NUTS 3 sub-regions, 19 experienced an increase in median house prices compared to the same period in the previous year, according to data released by the National Institute of Statistics (INE).
With prices per square meter in the municipality of Lisbon already at very high levels, the pressure is being felt in neighbouring municipalities. On the south bank of the Tagus (Tejo) River, the increase in value exceeds 70% in Barreiro, Seixal, Palmela, Setúbal, and Moita.
The four sub-regions with the highest median house prices, namely Algarve, the metropolitan areas of Lisbon and Porto, and Região Autónoma da Madeira, also had the highest values for both categories of the purchaser's tax residence. In the metropolitan areas of Porto and Lisbon, the median price (€/m2) for transactions involving purchasers with tax residence abroad exceeded, respectively, the prices of transactions by purchasers with tax residence within the national territory by +61.3% and +91.6%.
House prices surged almost fifty percent in four years.
During the second quarter of 2023, a deceleration in housing prices was observed in 17 of the 24 municipalities with over 100 thousand inhabitants, with Barcelos (-17.8 p.p.), Loures (-11.6 p.p.), and Odivelas (-10.3 p.p.) standing out for experiencing decreases of over 10 percentage points. Conversely, the municipality of Porto saw an increase of +7.1 p.p., and Lisbon recorded an increase of +3.7 p.p.
In the same quarter, the 3rd quartile of dwelling sales exceeded the national average (2,456 €/m2) in regions including Algarve (3,450 €/m2), the metropolitan areas of Lisbon (3,411 €/m2) and Porto (2,537 €/m2), and Região Autónoma da Madeira (2,690 €/m2). Notably, in Algarve, the median house rental value was higher than the 3rd quartile of all other NUTS 3 sub-regions, except for Área Metropolitana de Lisboa and Região Autónoma da Madeira.
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