Housing prices continued upwards in 2021, rents stabilised

  • Lusa
  • 6 January 2022

"Despite the pandemic situation, the average sale prices of flats continued the upward trajectory practically in all districts of Portugal," CASAFARI said in a statement released this Thursday.

Property prices in Portugal continued to rise in 2021, especially for detached houses, with the districts of Évora and Lisbon standing out with respective variations between 13.2% and 11.8%, according to data from real estate data platform, CASAFARI, released on Thursday.

“Despite the pandemic situation, the average sale prices of flats continued the upward trajectory practically in all districts of Portugal, with Faro, Lisbon and Évora registering the largest increases (between 8.4% and 9.4%), followed by Aveiro and Madeira, with the same 8.2%,” CASAFARI, said in a statement.

However, Guarda showed the biggest decrease (-1.6%).

By district, in Lisbon, as far as house sales are concerned, the prices of flats and houses continued to rise, with Alenquer (13.8%) and Cascais (11.9%) leading the increases.

Cascais, Lisbon and Oeiras figure as the most expensive municipalities in Lisbon, with flat sale prices in the region of €300,000 and €400,000.

In rentals there was a generalised increase in supply, in view of the “crisis in the tourism sector due to the pandemic”, leading to the stabilisation of prices.

In 2021, none of the Lisbon municipalities had a rise in the average rental price of more than 2.9%, CASAFARI pointed out, adding that Lisbon, Cascais and Oeiras are the most expensive municipalities.

Cascais had an average rental price of €1,204, Lisbon €1,070 and Oeiras €960.

In Porto, in turn, all the municipalities had, in the period in question, a growth in the sale price of flats and houses, with the highest variation in the average sale price of flats in Vila do Conde (12%).

The councils of Santo Tirso, Felgueiras and Vila Nova de Gaia saw the largest increases in the sale price of houses, with, respectively, 15.1%, 13.1% and 12.2%.

Matosinhos is the municipality that had the highest average rental prices, “in the order of €750”.

In Faro, all the municipalities have shown “continuous growth” in the average sale prices of flats and houses, highlighting, in the case of flats, Vila Real de Santo António and Silves, with increases between 12% and 14%.

With regard to the sale of villas, in this district, the biggest increase was seen in Castro Marim, with progressions reaching 16.2%, followed by Lagos (14.9%).

“The highest average price for the sale of villas continues to be recorded in the municipalities of Loulé and Lagos, with figures of around €620,000 and €670,000”.

The report also concluded that in terms of rentals, the boroughs of Faro “show some variations, with a tendency for average prices to stabilise, or even decrease”.

Despite having registered a “residual increase” of 0.8%, Loulé remains the most expensive borough in the Faro district, “where renting a house costs an average €750”.

However, Albufeira and Tavira have seen a decrease in average rental prices of around 3%, but Vila Real is the borough with the biggest drop (-5.8%).

Lastly, in Setúbal “no municipality registered a decrease in prices”, while Moita (10.9%) experienced the greatest increase in the average sale price of flats.

Between the third and fourth quarters, the city of Setúbal saw a 1.4% drop in prices, the highest in this district.

Grândola has the most expensive average purchase price for a flat (around €328,000) and Barreiro (4.7%) has the highest price increase per square metre (m2) between the third and fourth quarters.

Launched in 2018, CASAFARI connects more than 20,000 real estate professionals, covering all asset classes in Portugal, Spain, Italy, France and Germany.

Its clients include Sotheby’s International Realty, Century21, JLL, Savills, RE/MAX ‘franchises’ and Engel & Voelkers.