House prices up; sales down

 In House prices, Housing market, News

The price of buying a home in Portugal rose by an average of 8.7% in the second quarter of 2023 but the number of transactions fell 22.9%.

Nevertheless, the figures for August indicate that Portugal’s housing market may be stabilising since prices only rose by 0.8% that month.
Viseu led the greatest increase in house prices while Lisbon continued to be the most expensive place in Portugal to live.
However, the price of luxury homes has slowed in Lisbon this year, although they are expected to rise by 2% in 2024 according to a study from the Housing Prices Index released by the National Statistics Institute INE.
The price of existing houses increased at a faster rate than new build, 9% and 8% respectively. Between April and June there were 33,624 transactions worth a total of €6.9Bn, a reduction of 22.9% and 16.7% like-for-like on 2022.
Overall, prices in Portugal rose 8.7% in Q2 like-for-like and 3.1% MoM and 3.1% like-for-like on 2022.
For the period, 79.7% of transactions involved existing houses, a total of 26,799 units, down 25% on the same period in 2022. New build houses represented 6,825 transactions, a reduction of 13.2% in comparison to the second quarter of 2022.
Per region, 9,696 properties were transacted in the Lisbon Metropolitan Area (28.8% of the total), in the North and Centre regions, with 9,628 and 7,489 transactions respectively.
Some 2,946 properties (8.8% of the total) were sold in the Algarve, a fall of 0.8%. Alentejo and Madeira had 2,537 and 795 respectively. In the Azores 533 properties were sold (1.6%) of the total.
For the quarter 2.9Bn were transacted in the Lisbon region (42.5%), €1.6Bn in the North (23.1%) with increases in like-for-like market shares up 0.5% and 0.8% respectively.
Viseu saw the greatest increase in house prices in August with the cost of each square metre being €1,369 metres. (+3.5% on July)