Portuguese house purchase prices resume growth of 1.2 % in November.

Home sales in Portugal slow down in 2023 due to rising interest rates, loss of purchasing power due to inflation and lack of confidence in the market. But while demand is down, it still far outstrips supply. And as a consequence, house purchase prices in Portugal continue to rise, with an increase of 1.2% in November compared to the previous month. This is seen almost throughout Portugal, as prices of houses for sale rose in 13 prefecture capitals between October and November, with Ponta Delgada leading the increase (3.5%), as indicated by the price index from Idealista.

From July to October, prices of houses for sale in the country stabilized due to slowing demand. By the end of November, however, demand had probably started to put pressure on supply again and house prices started to rise again, with the average house purchase price at €2,530 per square meter, up 1.2% compared to October. According to the annual report, house prices in Portugal rose by 4.6%.

House purchase prices rose in November in 13 of the 19 prefecture capitals mentioned in the example, with Ponta Delgada (3.5%), Aveiro (3.1%), Viseu (2.5%) and Braga (1.8%) at the top of the list. Next came Beja (1.7%), Funchal (1.7%), Leiria (1.7%), Castelo Branco (1.6%), Évora (1.4%), Porto (1%), Viana do Castelo (0.8%), Santaren (0.5%) and Lisbon (0.5%).

In Faro (-0.2%), Bragança (-0.3%), Coimbra (-0.3%) and Setubal (-0.4%), however, house prices for sale were almost unchanged over the period. On the other hand, prices fell in Vila Real (-3.4%) and Guarda (-3.1%).

Lisbon is still the most expensive city to buy a home: 5,426 euros per square meter. Porto (€3,424/m2) and Funchal (€3,158/m2) are in second and third place respectively.

Faro (2,911 euro/m2), Aveiro (2,485 euro/m2), Setubal (2,255 euro/m2), Évora (2,030 euro/m2), Coimbra (1,821 euro/m2) follow, Viana do Castelo (€1,820/m2), Ponta Delgada (€1,808/m2), Braga (€1,779/m2), Viseu (€1,422/m2) and Leiria (€1,376/m2).

The most affordable cities to buy a home in Portugal are Guarda (€804/m2), Castelo Branco (€857/m2), Bragança (€949/m2), Beja (€957/m2), Vila Real (€1,142/m2) and Santarém (€1,178/m2).

An analysis of Portugal's sample regions and islands, it is noticeable that the biggest increase in the prices of houses for sale is seen in São Jorge Island (17.8%), Castelo Branco (11.8%) and Porto Santo Island (5.9%). This is followed by Portalegre (4.9%), Viseu (3.9%), Évora (3.8%), Santaren (3.1%), Faial Island (2.6%) and Madeira (2.4%). With house price increases of less than 2% are Beja (1.9%), Terceira Island (1.8%), Santa Maria Island (1.6%), Leiria (1.6%), Porto (1.5%), Coimbra (1.5%), Aveiro (1.1%), Lisbon (0.5%) and Faro (0.5%).

Housing prices for purchase were almost unchanged over the period in Pico Island (0.3%), Braga (0.3%), Viana do Castelo (0.2%), Setubal (0.1%) and Guarda (-0.3%). On the other hand, prices fell in Vila Real (-1.3%) and Bragança (-1.1%).

The ranking of the most expensive areas to buy houses is headed by Lisbon (3,861 euro/m2), followed by Faro (3,215 euro/m2), Madeira Island (2,848 euro/m2), Porto (2,487 euro/m2), Setubal (2,464 euro/m2), Porto Santo Island (2,165 euro/m2), Aveiro (1,662 euro/m2), São Miguel Island (1,604 euro/m2), Leiria (1,549 euro/m2), Braga (1,515 euro/m2), Viana do Castelo (1,409 euro/m2), Coimbra (1,377 euro/m2), Pico Island (1,364 euro/m2), São Jorge Island (1,325 euro/m2), Faial Island (1,309 euro/m2), Évora (1,299 euro/m2), Terceira Island (1,144 euro/m2) and Santaren (1,128 euro/m2).

The most affordable areas to buy houses are Guarda (€689/m2), Portalegra (€700/m2), Castelo Branco (€861/m2), Bragança (€865/m2), Vila Real (€949/m2), Beja (€1,067/m2) and Viseu (€1,073/m2).

In November, prices of houses for sale rose in all regions of the country except Lisbon (0.3%), where they remained stable. The Autonomous Region of the Azores (3.6%) leads the growth, followed by the Autonomous Region of Madeira (2.4%), Alentejo (2.2%), Center (2.1%), North (1.4%) and Algarve (0.5%).

The Lisbon region, with a price of 3,514 euros/m2, remains the most expensive region to buy a home, followed by the Algarve (3,215 euros/m2), the Autonomous Region of Madeira (2,836 euros/m2) and the North (2,082 euros/m2). On the other side of the table are Centro (€1,396/m2), the Autonomous Region of the Azores (€1,441/m2) and Alentejo (€1,530/m2), which are the most affordable regions to buy a home. Data are presented in the price index from Idealista.