The Portuguese real estate market is dynamic and the stock of properties for sale is reduced, which is pushing prices up. The Portuguese National Institute of Statistics (Instituto Nacional de Estatistica, INE) reports that the total number of transactions amounted to 167,000 in 2022, a record number for the country. Among the buyers, 25,000 were foreigners.
Prices in Portugal are, on average, lower than in France with an amount of 1,484 euros per square meter in 2022, however up 14.4% compared to 2021 according to the INE. The Algarve regions, the metropolitan area of Lisbon (where prices are between 2,000 and 3,000 euros per square meter), the metropolitan area of Porto (1,607 euros per square meter) are the most expensive sectors of the country and the most demanded by foreign buyers.
However, the market should slow down in the coming months: “the Portuguese are faced with rising interest rates, but with the additional disadvantage that these are variable and not fixed rate credits, which aggravates the situation in this period of high rates”explains Alfredo Valente, general manager of the network of IAD agents in Portugal.
Lisbon more expensive than the rest of the country
Among the most expensive cities, Lisbon comes first with an average price of 3,872 euros per square meter. “But you should rather count 5,000 euros for a purchase in a central district”, says Roman Carel, head of the Athena Advisers agencies in Portugal. Casafari, a specialist in data aggregation for real estate professionals, indicates that prices are, for example, 5,500 euros per square meter on average in the Belem district, on the edge of the Tagus. The Green-Acres advertising portal thus offers for sale a 138 square meter apartment to renovate with a view of the Tagus at the price of 750,000 euros. And it takes 7,000 euros per square meter for a new apartment in the city center.
To find more affordable, you have to turn to Cascais or Oeiras, west of Lisbon, where prices are around 3,001 euros per square meter. Other regions popular with tourists such as the Algarve are less expensive: in Faro, it takes 3,000 euros per square meter. Same thing in Loulé, located not far from Faro and close to beautiful beaches and golf courses. In Porto, it takes 3,450 euros per square meter. Finally in Madeira, prices reach 2,500 euros to 3,000 euros per square meter.
Goods of heterogeneous quality
“There are great opportunities in Portugal with prices that remain reasonable compared to big cities like Paris, but beware, the French public must be aware that the quality of properties, even renovated ones, is not always as expected. , and it is generally necessary to plan works », warns Romain Carel. However, this work is not always easy to carry out, because the workforce is lacking in Portugal and the cost of materials is high. It is therefore necessary to be advised before buying, especially since real estate diagnoses as we know them in France do not exist.
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