Property and rent prices on the rise in Portugal24 July
Portugal rental market update
The report also shows that the average rent rose from €1,097 per month in May to €1,206 in June which represents an increase of around 10%. This increase was primarily driven by significant rent price growth in Setúbal (+9.1%), Lisbon (+8.5%) and Faro (+7.8%). Tenants in Beja faced a staggering 28.8% increase and the average rent here is now €733.
Unsurprisingly, the capital was revealed as the most expensive place to live in Portugal with an average rent of €1,546. Porto took second place with an average rent of €1,014, a 2.4% increase on the previous month. Setúbal and Faro were not far behind Porto with average rents of €935 and €931, respectively.
At the other end of the spectrum, Portalegre, Guarda, Castelo Branco, and Vila Real were named the most affordable places to live in Portugal. In these districts, rents range from €320 in Portalegre to €465 in Vila Real.
Property prices in Portugal increase
The study also shows that the average property sale price rose by 2.9% between May and June this year.
As with rent prices, property prices increased the most in Setúbal. Just outside of Lisbon, Setúbal is home to Comporta, the ultimate beach getaway, and Alcohete, where our latest Portugal launch, Tagus Bay, can be found. Prices in Setúbal rose by 4% and now the average property price is €298,277. This is great news for investors who own property in Comporta or Alcochete
With an average property price of €577,150, Lisbon remained the most expensive district to buy a property in Portugal and prices here jumped by 3.7% June. Faro occupies the second position with an average property selling price of €465,464 in June, a 2.4% increase on the average price in May. Faro was followed by the Autonomous Region of Madeira, where the average price of properties for sale rose 0.4% to €332,315 and Porto, where prices increased by 2.7% to €321,146.
The most affordable property prices were found in Portalegre, Castelo Branco, Beja and Guarda. In these districts, the average property selling price ranged from €116,459 €128,719. In the case of Portalegre and Castelo Branco, prices dropped by 11.1% and 0.4%, respectively.
Portugal property market statistics: 2020 vs. 2019
The average property sale price in June 2020 was 10.8% higher than the figure for June last year.
The average property price in Portugal has been growing, with increased momentum since November 2019. While property price growth slowed down in May this year, due to the effects of COVID-19 on the real estate market, this price growth in June is promising and suggests that the market is recovering. It is expected that prices will steadily rise over the coming months.
There has been very little change in rent prices. In June 2019, the average rent was €1,208 and in June 2019 has decreased by just €2 to €1,206.
When comparing June 2019 with June 2020, the largest drops in rent prices were seen in Castelo Branco (-11%), Porto (-10.3%), the Autonomous Region of Madeira (-2.7%), and Portugalegre (-2.4%).