Institute data: life in Portugal has become more expensive.

Housing prices in Portugal continue to rise, reaching an average of €1,484 per square meter in 2022, up 14.4% from 2021, according to the country's National Institute of Statistics (INE) data released on Friday (April 21).

Lisbon (€3,872 per square meter) has the highest house price in the country.

Besides the capital, Cascais, Oeiras and Porto were also among the locations with higher average prices above 2,500 euros per square meter.

Real estate prices continued to rise. For example, in the fourth quarter of last year alone, the average house price in the country was 1,500 euros per square meter, 10.7% more expensive than at the same time in 2021.

One of the reasons for the constant rise in prices is said to be the influx of foreign buyers, many of whom are Brazilians, who are paying significantly higher amounts than locals.

While the average amount paid by citizens with tax residency in Portugal was €1,454 per square meter, foreigners paid around €2,237 per square meter.

The rise in prices has forced many families to move to the suburbs as it has become too expensive to live in city centers. For example, data from last year shows that the average property to buy was worth €490,000 (R$2.8 million), while the average annual household income is €28,575 (R$163,000).

The income is a little more than half of how much a Lisbon resident needs to earn per year to get a mortgage.

Another reason for the growth of real estate in capital cities and coastal areas is the incentives provided by the Portuguese government to attract foreign nationals and revitalize the local economy.

Those who bought houses and apartments worth more than 500,000 euros with a Visa Gold card could formalize their residency in the country.