Houses for sale in Portugal continue to become more expensive (although at a slower pace), further exacerbating the housing affordability problem that currently plagues the country.
The idealista price index reveals that house prices in Portugal rose by 2.8% in the second quarter of the year compared to the previous quarter, a trend that set the median cost of housing at 2,683 euros per square meter (euros/m2) at the end of June.
This scenario is visible across almost the entire Portuguese territory, as houses became more expensive in 18 district capitals between April and June, with Ponta Delgada leading the rise (8%). Houses also became more expensive in Lisbon (1.3%) and Porto (0.9%). In relation to the annual variation, house prices in the country rose by 7%.
Analysing the 19 district capitals with representative samples, it appears that house prices rose in 18 cities, with Ponta Delgada (8%) leading the rises. Next are Viseu (5.6%), Bragança (4.7%), Santarém (4.5%), Leiria (4.5%), Setúbal (3.9%), Funchal (3.9%) , Beja (3.9%), Guarda (3.8%), Évora (3.5%), Faro (1.8%), Aveiro (1.5%), Castelo Branco (1.4%), Lisbon (1.3%), Porto (0.9%), Vila Real (0.8%), Portalegre (0.6%) and Coimbra (0.6%).
On the other hand, prices fell by 4.3% in Viana do Castelo, being the only district capital where houses for sale became cheaper in the second quarter of the year.
Lisbon continues to be the city where it is most expensive to buy a house: 5,642 euros per square meter (euros/m2). Porto (3,578 euros/m2) and Funchal (3,388 euros/m2) occupy second and third place, respectively. This is followed by Faro (2,979 euros/m2), Aveiro (2,534 euros/m2), Setúbal (2,391 euros/m2), Évora (2,162 euros/m2), Ponta Delgada (1,932 euros/m2), Coimbra (1,878 euros/m2 ), Viana do Castelo (1,804 euros/m2), Viseu (1,534 euros/m2), Leiria (1,520 euros/m2), Vila Real (1,268 euros/m2) and Santarém (1,254 euros/m2).
The most economical cities to buy a house are Guarda (802 euros/m2), Portalegre (805 euros/m2), Castelo Branco (908 euros/m2), Beja (944 euros/m2), Bragança (975 euros/m2 ).
Analyzing by districts and islands, the biggest increases in the prices of houses to buy took place in Braga (9.1%), São Miguel island (8.4%), Pico island (6.1%), Madeira island (4.8%), Terceira island (4.3%), Castelo Branco (4.2%), Santarém (3.1%), Setúbal (3.1%), Porto (2.9%), Viseu (2.5%), São Jorge island (2.5%), Évora (2.3%), Lisbon (2.2%) and Portalegre (2.1%). With price increases of less than 2% are Leira (1.7%), Faro (1.6%), Beja (1.3%), Aveiro (1.3%) and Vila Real (1.1% ).
Among the 26 districts and islands analysed, housing for sale became cheaper in only four territories, namely Viana do Castelo (-3.8%), Guarda (-3.6%), Faial Island (-2.9%), and Porto Santo Island (-1.2%). In Bragança (0.4%), Santa Maria island (0.3%), and Coimbra (-0.1%), house prices remained stable during this period.
The ranking of the most expensive districts to buy a house is led by Lisbon (4,096 euros/m2), followed by Faro (3,373 euros/m2), Madeira island (3,107 euros/m2), Porto (2,656 euros/m2), Setúbal (2,548 euros/m2), Porto Santo island (2,247 euros/m2), São Miguel island (1,767 euros/m2), Aveiro (1,709 euros/m2), Braga (1,659 euros/m2), Leiria (1,631 euros/m2), Pico island (1,458 euros/m2), Santa Maria island (1,418 euros/m2), Coimbra (1,409 euros/m2), Viana do Castelo (1,381 euros/m2), Évora (1,303 euros/m2), Faial island (1,276 euros/m2), São Jorge island (1,249 euros/m2), Terceira Island (1,224 euros/m2) and Santarém (1,171 euros/m2).
The most economical prices to purchase a home are in Guarda (683 euros/m2), Portalegre (733 euros/m2), Castelo Branco (867 euros/m2), Bragança (880 euros/m2), Vila Real (983 euros /m2), Beja (1,085 euros/m2) and Viseu (1,121 euros/m2).