House prices skyrocketed by 6.6% in Q2

 In House prices, Housing, Housing crisis, News, Property, Real Estate

The average price of family properties sold in Portugal rose by 6.6% in the second quarter, compared to the first three months of the year and the same period in 2023, concludes Portugal’s National Statistics Institute (INE).

And between June 2020 and June 2024 house prices soared by a whopping 60% in 49 districts in Portugal while in 33 of these districts the price per square metre of residential property stood at 2,000m2 or over.

According to data on house prices in Portugal released by INE on Tuesday, October 22, the average price of family accommodation transacted in the second quarter was €1,736 per square meter (m2).

This represents an increase of 5.6% compared to the first quarter of 2024, and 6.6% compared to the same quarter. “The latter rate was higher than that observed in the previous quarter, which stood at 5%,” adds INE.

In this period, five sub-regions of the country recorded higher housing prices than the rest of the country: Greater Lisbon (€2,801 per m2), Algarve (€2,735 per m2), The Autonomous Region of Madeira (€2,080 per m2), Setúbal Peninsula (€2,048 m2) and the Porto Metropolitan Area (€1,957€/m2). Of these, only the Algarve (+5.9%) and Greater Lisbon (+1.4%) registered annual variation rates lower than the national one, it concludes.

In the second quarter of 2024, the Douro sub-region recorded the largest year-on-year decrease in housing prices (-5.6%). On the other hand, the Viseu Dão Lafões sub-region recorded the highest growth compared to the same quarter of the previous year (+17.2%). Beira Baixa had the lowest average sale price of family accommodation (€562 per m2).

The prices that overseas buyers was higher according to INE data. In the second quarter, the average price of family accommodation transacted in Portugal involving buyers who were tax domiciled abroad was €2,454 per m2, +1.9% than in the same quarter the previous year. The average price of transactions involving resident buyers was €1,702 per square meter (7.2% more than in the same quarter compared to local buyers).