House prices on Portugal’s coastal strip up 3.9%

 In News, Property, Real Estate, Relocating

House prices along Portugal’s coastline have seen an average hike of nearly 4% in 2020 despite the pandemic.

The news comes as Portugal’s Ministry of Internal Administration states that the increase in Portugal’s resident overseas population sees no sign of slowing after it increased in 2019 for the fourth year running, totalling 590,348 citizens — the highest amount registered by the immigration authorities SEF since it was formed in 1976.
And that number increased 12% in 2020, meaning that the number of overseas relocators has risen 75% since 2015, totalling 660,000 immigrants with residency authorisation.
And that means there is no shortage of house buyers which has helped to keep prices high in the housing market at a time when other parts of the economy have slid due to the pandemic.
Beatriz Rubio, the CEO of Remax Portugal told members of the American Club of Lisbon on Tuesday evening that sales had been buoyant and prices bullish because of the demand from overseas relocators attracted to Portugal because of its warm climate, safety and security record, good health and education infrastructure, competitive cost of living and sunny climate. The self-made entrepreneur and disruptor in Portugal’s real estate business said that Brazilians, Chinese and US citizens were Remax’s biggest overseas clients, with a growing emphasis on the US market thanks to the government’s Golden Visa scheme.
However, she questioned the government’s wisdom in changing the scheme to make Lisbon, Porto and parts of the Algarve off-limits in favour of the interior of the country where “investors do not always want to go”.
Beatriz Rubio also expressed the opinion that the market would remain strong with high demand for the foreseeable future thanks to low inflation and cheap mortgages as well as an expected boom in the economy this decade.
According to a study by Idealista, the price of homes along the coast increased 3.9% in April 2021 like-for-like in 2020.
The price per square metre was set at €1,371 with houses on and near the coast in the district of Beja going up the most (11.4% to €1,932 per m2).
This was followed by homes located along the coastal district of Aveiro, with an increase of 10.9% and Setúbal (9.4%).
Along the Algarve coast around Faro prices went up 5.5% and in costal areas around Lisbon, Leiria, Viana do Castelo and Coimbra prices increased 5.2%, 4.3%, 4.2% and 2.9% respectively, while the island of Porto Santo (Madeira) the number registered was 0.6%.
On the other hand, prices on the Azores island of Terceira fell -5.3%, São Miguel (-3.6%), Braga (-3.1%) and Madeira (-1.3%).
Not surprisingly, it is along the Lisbon coastline that prices are the highest with properties fetching €2,288 per m2. This is followed by Faro (€2,247 m2), Beja (€1,932 m2), Setúbal (€1,855 m2) and Porto (€1,828 m2). The Island of Madeira is €1,376 m2 and Porto Santo €1,334 m2.
The cheapest places to buy houses are on the Island of São Miguel (€839 m2), Terceira (€849 m2), Coimbra (934 m2), Viana do Castelo (€1,035 m2), Braga (€1,123 m2), Aveiro (€1,201 m2) and Leiria (€1.333m2).