Sale of real estate in Portugal has decreased: market overview
The decline in global demand caused by the coronavirus pandemic has affected all segments. The real estate market was no exception, although it is considered one of the most profitable and stable. Investors’ interest has fallen in many European countries, including resort ones. During the first quarter of this year, real estate sales in Portugal decreased by 5% compared to previous months. In total, deals were concluded for 44850 objects. As in 2019, the period of housing sale was about 6 months.
Almost 33% or 14730 objects of all real estate were sold in Lisbon, 15% – 6640 units were sold in Porto. In the central part of the country the share of sales was 23% of the total, while in the northern part – 14%. In Algareva 9% or 4155 objects were sold, in Alentejo – 6% or 2730 housing units.
In the first months of this year, the average cost of real estate in Portugal was 1730 euros per square meter. In Lisbon it is more expensive – about 2220 euros per square meter, in the Algarve – 1800 euros per square meter. In Porto, you have to pay 1500 euros per square meter.
Experts hope that in the near future the demand for real estate in the country will grow, moreover, before the pandemic, investors showed great interest in it. The project of renovation of housing in Porto was launched, thanks to which old apartments were renovated in order to give them to tourists. The city is the second largest after the capital of Portugal. It is home to about 1.3 million people, the metropolis is actively developing, which is not unnoticed by foreign investors.
The appearance of the city has changed significantly over the past 10 years. It has become more convenient for tourists and the infrastructure has improved. There appeared hotel complexes from international brands, and the number of apartments for short-term rent increased. The most attractive for investment are the coastal areas of Porto, which are adjacent to the river and ocean.
The cost of housing is also increasing. For 3 years, the prices for premium facilities in the city center grew annually by 20%. On average, apartments will start here from 300 thousand euros, in the elite district of Foz to Douro housing will cost 3 million euros. Last year, the price of residential real estate increased by 9.8%. The secondary market rose in price by 10%, and new buildings – by 7.6%.
The northern region of Portugal, which includes Porto, is increasing construction. Last year about 43% of the total number of permits for the construction of new residential facilities were issued here.