Finding a home in Portugal: prices fall 0.5% in summer

The cost of buying a house was 2,525 euros per square meter at the end of September this year, according to the price index from idealista. Although homes for sale fell slightly in the summer compared to the previous quarter, house prices in Portugal were up 5.7% compared to the third quarter of 2022 (a year earlier).

Home prices rose in 10 district capitals In the third quarter, house prices rose in 10 district capitals, with Bragança (8.2%), Guarda (6.8%) and Funchal (4.8%) leading the way. They were followed by Viseu (3.3%), Ponta Delgada (3.1%), Braga (2.7%), Santaren (2.6%), Faro (2.5%), Leiria (1.7%) and Porto (0.8%). In Coimbra (0.3%), Lisbon (0.3%), Portaligre (0.2%), Setubal (0.1%) and Viana do Castelo (-0.4%), house prices remained stable. On the other hand, prices decreased in Évora (-9.3%),''Vila Real (-5.7%), Aveiro (-4.2%), Beixe (-1.3%) and Castelo Branco (-0.5%).

Lisbon continues to be the city where buying a home is the most expensive at 5,366 euros per square meter. Porto (3,440 euros/m2) and Funchaló (3,084 euros/m2) are in second and third place respectively. They are followed by Faro (2995 euro/m2), Aveiro (2395 euro/m2), Setubal (2309 euro/m2), Évora (2007 euro/m2), Coimbra (1849 euro/m2), Viano do Castelo (1843 euro/m2), Ponta Delgado (1771 euro/m2), Braga (1748 euro/m2), Viseu (1377 euro/m2), Leiria (1331 euro/m2) and Vila Real (1259 euro/m2).

The most affordable cities to buy a home are Portalegre (718 euro/m2), Guarda (781 euro/m2), Castelo Branco (823 euro/m2), Beixe (922 euro/m2), Bragança (938 euro/m2) and Santaren (1127 euro/m2).

Housing prices fell slightly in the districts of Lisbon and Porto Analyzing 25''Portuguese districts and islands, it can be observed that house purchase prices increased in 12 regions between the third quarter of 2023 and the previous quarter. The highest house price increases occurred in Portalegre (7.5%), Madeira (6.6%), Porto Santo Island (5.6%), Viseu (4.4%) and São Miguel Island (4.1%). They are followed by Santaren (3.3%), Setubal (3%), Leiria (2.5%), Faro (1.8%), Guarda (1.4%), Pico Island (1.3%) and Terceira Island (1.0%).

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Meanwhile, on the island of Faial (0.4%), Braga (0.2%) and Beixa (0.1%), prices of for-sale housing remained virtually unchanged over the period.

There are also 10 counties/islands where home prices declined. Specifically, house purchase prices fell in Évora (-9.3%), Castelo Branco (-6.9%), São Jorge Island (-5.6%), Coimbra (-3.6%), Porto (-1.8%), Aveiro (-1.8%), Bragança (-1.4%),''Lisbon (-1%), Viana do Castelo (-1%) and Vila Real (-0.7%).

The ranking of the most expensive districts and islands to buy a home is headed by Lisbon (3841 euro/m2), followed by Faro (3230 euro/m2), Madeira (2740 euro/m2), Setubal (2471 euro/m2), Porto (2457 euro/m2), Porto Santo Island (2035 euro/m2), Aveiro (1643 euro/m2), São Miguel Island (1,571 euro/m2), Leiria (1,553 euro/m2), Braga (1,531 euro/m2), Viana do Castelo (1,450 euro/m2), Coimbra (1,382 euro/m2), Pico Island (1,313 euro/m2), Évora (1,308 euro/m2), Faial Island (1,267 euro/m2), Terceira Island (1,119 euro/m2), Santaren (1,103 euro/m2) and São Jorge Island (1,057 euro/m2).

The most affordable prices for buying a home in Portugal can be found in Guarda (664 euro/m2), Portalegre (713 euro/m2), Castelo Branco (798 euro/m2), Bragança (864 euro/m2), Vila Real (968 euro/m2), Viseu (1,042 euro/m2) and Beixa (1,045''euro/m2).

Housing prices rose in most regions In the third quarter of 2023, the prices of homes for sale fell only in the North (-1.9%) and in the Central Region (-1.1%). On the other hand, prices rose in the Autonomous Region of Madeira (6.5%), followed by the Alentejo (5%), the Algarve (1.8%) and the Autonomous Region of the Azores (1.4%). In the Lisbon Agglomeration (-0.4%), house prices remained stable during the period.

The Lisbon Agglomeration with 3493 euro/m2 continues to be the most expensive region to buy a home, followed by the Algarve (3230 euro/m2), the Autonomous Region of Madeira (2728 euro/m2) and the North (2078 euro/m2). On the other side of the table are the Autonomous Region of the Azores (1,377 euro/m2), the Central Region (1,388 euro/m2) and the Alentejo (1,599 euro/m2), which are''the cheapest regions to buy a home.

The idealista Real Estate Price Index To compile the idealista Real Estate Price Index, the offer prices (based on square meters of construction) published by idealista advertisers are analyzed. Atypical listings and overpriced listings are excluded from the statistics. We also include the typology "individual houses" and discard all ads that are in our database and do not receive interaction from users for some time. The final result is obtained by calculating the median of all valid listings of each market.

The full report can be found at: https://www.idealista.pt/media/relatorios-preco-habitacao/venda/