Guarda was where house prices rose most with a 9.2 percent increase and Viana do Castelo is where house prices fell most with a drop of 2.4%, reveals the Idealista index.
House prices have risen in Europe, with Portugal being one of the countries where house prices have risen the most in the last 12 years where we have seen price increases month after month. Coupled with a general rise in the cost of living, due to high inflation and worsening interest rates, the Portuguese continue to face a high price tag when it comes to housing.
At a national level, the prices of houses for sale in Portugal remained stable in August compared to the previous month. Unfortunately, this scenario, cannot be said for 17 district capitals in which house prices rose, between July and August. The Idealista index revealed that Guarda rose by 9.2 percent followed by Braga and Aveiro with a 3.7 percent increase, whereas house prices in Lisbon recorded a minimal rise of 0.1 percent, which was mirrored in Porto where prices only rose by 1 percent in this period.
At the end of August this year, buying a house in Portugal had a cost of 2, 393 euros per square meter (euros/m2), taking into account the median value. As for the quarterly and annual variation, house prices in Portugal rose by 1.4 percent and 5.8 percent, respectively.
August House Prices Soar
House prices in August rose in 17 district capitals, with Guarda (9.2%), Braga (3.7%) and Aveiro (3.7%) leading the list. This is followed by Funchal (3 percent), Faro (2.8 percent), Portalegre (2.7 percent), Évora (1.9 percent), Setúbal (1.5 percent), Santarém (1.1 percent), Bragança (1 percent), Porto (1 percent), Viseu (0.8 percent), Castelo Branco (0.7 percent), Beja (0.3 percent), Leiria (0.2 percent), Coimbra (0.2 percent) and Lisbon (0.1 percent). On the other hand, prices only fell in Viana do Castelo (-2.4 percent), Ponta Delgada (-1.5% percent and Vila Real (-1.4 percent).
The most expensive cities to buy a home
Lisbon continues to be the most expensive city in which to buy a house: 5,004 euros/m2. Porto (3,108 euros/m2) and Funchal (2,532 euros/m2) are in second and third place, respectively. They are followed by Faro (2,420 euros/m2), Aveiro (2,370 euros/m2), Setúbal (2,065 euros/m2), Évora (1,809 euros/m2), Coimbra (1,611 euros/m2), Braga (1,519 euros/m2), Ponta Delgada (1,497 euros/m2), Viana do Castelo (1,383 euros/m2).
The cheapest cities to buy a house in Portugal
The cities where it is cheaper to buy a house in Portugal are Portalegre (644 euros/m2), Guarda (776 euros/m2), Castelo Branco (783 euros/m2), Bragança (829 euros/m2), Beja (838 euros/m2), Santarém (917 euros/m2), Vila Real (1,085 euros/m2), Leiria (1,273 euros/m2) and Viseu (1,275 euros/m2).
The biggest rises in house prices to buy took place on Terceira Island (8.1%), São Jorge Island (7.2%) and Vila Real (7.1%).
Prices remained stable in the district of Coimbra during the month of August. On the other hand, house prices for sale fell in five districts/islands: in Santa Maria (-7.3 percent), Évora (-1.5 percent), Castelo Branco (-1.3 percent), Portalegre (-0.3 percent) and Beja (-0.2 percent).