While Portugal has been impacted by the global economic crisis, 10 years later the country is experiencing steady growth.
The prices of property in Portugal increased by 9% overall between 2006 and 2015. According to Standart & Poor, between the end of 2016 and the end of 2017, prices will be revalued by about 6%. The organisation also forecasts an increase of 4.5% for 2018 and 3% over the next two years.
The Instituto Nacional de Estatistica, on the other hand, reported an increase of 9.2% for old real estate in the first quarter of 2017, and 4.2% for new real estate. More generally, residential real estate raised by 7.6% in 2016 and 7.9% in the first quarter of 2017.
The Lisbon region shows the strongest growth with a price per square metre of around 2100€ (+10% in the first half of 2017). In Algarve the square meter is estimated at 1600€ (+ 6,7 %). In Madeira it is necessary to count approximately 1173€ a square meter (+ 7%). The North with an average price of 1051€ / m² (+5.1%), the Centre with 915€ / m² (+2.8%) and the Alentejo with 996€ / m² (-3.2%) posted the lowest growth in the first half of 2017.
Despite the revaluation of market prices, there are still more buyers. The number of transactions is constantly increasing. Indeed, the growth of +24% (OECD) between 2014 and 2015 was already substantial, and the following years confirmed this trend.
According to Standard & Poor, the number of residential real estate sales jumped by 19.4% in the first quarter of 2017 (+18.5% in 2016). In the newbuilt sector, the increase was less significant with +0.9% in 2016 and +1.9% in 2017.
The growth in sales volume is confirmed by the APEMIP, which highlights a 30% increase in the number of real estate sales during the first half of 2017.
Among the cities with the highest growth in terms of sales volumes, Lisbon is in pole position. It thus sees its real estate transactions raise by 30% between 2015 and 2016, while prices in the sector rose by 15% (CBRE).
The Portuguese real estate market is growing fast. A growth to which the very attractive regions of Algarve and Lisbon certainly contribute.
E.B – Meretdemeures.com.