Changes in rental and real estate prices in Portugal analyzed by Imovirtual.

Portugal: Portuguese real estate and property management portal Imovirtual has analyzed how the Portuguese rental and real estate market continues to be resilient despite the global lockdown and travel restrictions due to Covid-19.

The current global pandemic is a concern for the entire world population, both for health and financial reasons. Since March 18, Portuguese President Marcelo Rebelo de Sousa has declared a state of emergency, and the country has taken measures to socially distance itself and restrict access to public places and transportation. Locals are on the halt while tourists are advised not to visit the country until the pandemic is over.

Fund markets, businesses and homeowners are experiencing uncertainty, but property prices in Portugal continue to rise and increase at an encouraging rate. Compared to March last year, Imovirtual reports that real estate prices in Portugal have increased by 12 percent, showing the resilience of the housing market in the face of the Covid-19 crisis. The average building price rose from €316,629 in March 2019 to €354,757 in the same period in 2020, with the biggest increases seen in Évora and Setubal.

Despite the significant increase in house prices over the year, Évora and Setubal are not the most expensive places to live. Popular locations such as Lisbon and Faro have the highest average selling price, respectively €573,021 and €454,030, while Castelo Branco [€119,947] and Beja [€130,719] are the regions with the lowest real estate prices. Portalegre, close to the Spanish border, experienced the biggest drop in average property prices in Portugal, down 12 percent from last year. Despite the decline in house prices, Portalegre shows the biggest increase in rental prices with a 26 percent increase since last year [the average rent is now €390 per month].

Home prices in Portugal have clearly increased since 2019, and the country has taken a head start on the first quarter of 2020. However, despite the increase in home prices, the average rental price is down eight percent from last year. Lisbon and Porto, Portugal's two largest cities, have the highest average rental prices at €1,595 and €1,156 per month respectively, while Guarda and Castelo Branco have the lowest rents at €366 and €387 per month respectively.

Since the virus began spreading in Europe in January, lockdown measures and financial uncertainty have led to a change in people's public spending behavior. Due to the spread of the virus, there was a possibility of a global crisis in the real estate market. However, Portugal has seen an increase in real estate prices since February 2020, despite the intensity of the global pandemic. In just one month, the average price rose by one percent; the average price in February was €234,038 and in March it was €236,399, a difference of €2,361. The capital Lisbon reported an average price of €563,469 in February, meaning that the average price rose by €9,552 in March. Porto also recorded a significant increase, with an average price of €308,013 in February and €318,027 in March, an increase of €10,014. Regions such as Setubal, Faro and Braga also reported an increase in house prices from February 2020, confirming the stability of the real estate market in Portugal regardless of the situation with Covid-19.

With regard to the rental market, Imovovirtual also reported a moderate increase in prices from February 2020. The national average rent was €655, up from €660 in March. Lisbon and Braga saw rental prices rise by 2.4 percent [€1,595] and 3.4 percent [€763] respectively.

To learn more about the rise in house prices in Portugal, visit Imovirtual's despite.

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