Portugal: property prices are on the rise
Reports on housing price dynamics in the first quarter of 2020 show that residential real estate prices are growing, but the consequences of COVID-19 are not yet clear.
Portugal house prices rose by 1.6% in the first quarter of 2020 compared to the previous quarter, amounting to more than €2,000 per m2 according to Idealista.
Every region has seen quarterly price rises, except the central region, where values declined by 0.6%. In the North, prices had the strongest growth (3.6%), followed by Alentejo (3%), Lisbon Metropolitan Area (2.2%), the Algarve (2%) and Madeira Autonomous Region (0.6%).
The coastal cities of Lisbon and Porto gained 2.3% and 1.8% respectively, and Lisbon maintains its position as the most expensive property destination at almost €5,000 per m2.
Moreover, Propertywire says that the average asking price increased by 1% from €234,038 in February to €236,399 in March. This is consistent with annual property price growth, which was 12% year-on-year. However, according to an Imovirtual report, the average cost of rental real estate has decreased by 8%, compared to March 2019.
What will happen after the COVID-19 pandemic is still unclear. Time will tell, as many factors are at play, not just the duration of this crisis, but also Portugal’s ability to recover economically amid a downturn in international tourism.
Nevertheless, the property website Idealista says that many investors are showing their willingness to close opportunistic deals at this time or as soon as the market revives. This may be helped by the end of lockdown. Although earlier, Portugal announced the suspension of golden visas until July, all offices are expected to reopen on July 1st.