Erosion of house prices is already a reality in 19.2% of municipalities

Based on data from last October, about a fifth of Portuguese municipalities (19.2%) already show signs of a certain erosion in residential property prices, a fact that is largely due to the resulting property cooling of the Covid-19 pandemic, but it can also be explained by two other factors:

  • Some of the municipalities are smaller in size, which contributes to greater price volatility;
  • Part of the municipalities that, in October, showed price falls compared to October 2019, presented decreases below 2.5%, so these data cannot be read in a deterministic way, since they are within the margin of error of the study.

This scenario, not being synonymous with greater real estate dynamism, or with a strong recovery in the sector, cannot equally be perceived as a possible abrupt shock from residential asking-prices, reveals the consultant, moving in the analysis by regions published in November.

On the other hand, the dynamism on the Supply-side remains stable in national terms, as there is a constant and sustainable flow of new real estate product, susceptible of being observed in the fact that 14.3% of the Apartments and 8.7% of the Houses have been on the market for less than 30 days, a data of increased relevance, in particular, in a pandemic context and with limitations on mobility.

Putting the focus of analysis in the district of Lisbon, it appears that the capital has the highest values ​​per m2 in the country, being accompanied by Cascais and Oeiras, without, however, being perceived any movements of inflection of this reality, or of adjustment significant decrease in the practiced values.

“The district of Lisbon has a very large heterogeneity, since it brings together the 3 most expensive municipalities in the country, it is true, but alongside urban areas with substantially lower reference values, but which, in some cases, and over the In recent years, they have seen their benchmarks impacted by a growing demand for families who are unable to acquire a home in the capital”, highlights Manuel Braga, CEO of Imovendo.

Despite this trend of appreciation of residential assets, the October data show that in the district of Lisbon, the price trend maintains an effective appreciation in year-on-year terms, with the exception of Lourinhã, which compared to October 2019, felt a 2.8% cooling in the asking prices of apartments.

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