In a year where using the word “atypical” could be considered a mere euphemism, good news is seen as a true oasis in a desert.
The national real estate market, so frequently targeted in the media due to its solid performance guided by uninterrupted increases over the last few years, faced one of the most intense tests to which it could be subjected to in recent times, the Coronavirus.
Indeed, many analysts have predicted the worst for this vital segment of the national economy. However, the most recent data has now been revealed. They reveal a timid, but real increase in the price of purchase and sale of properties between July and August 2020, at 0.07%. Furthermore, it is important to absorb these numbers by considering the data also made available for the same period last year, where there’s been a growth of 4.70% in the last 12 months.
July and August Hold the Market
With relatively slight variations between July and August in terms of house prices, there can be no marked trends either up or down.
Lisbon continues to lead with an average sale price of €541,750 (-0.19%), followed by Faro at €447,934 (0.45%) and Porto (0.15%) among the districts where it is more expensive to buy a property.
In the districts where the sale price is more accessible, the variations do not reach more than one percentage point. Portalegre shows a decrease of -0.93% (€113,215), together with the district of Guarda with -0.87% (€122,649) and Beja (-0.69%). Castelo Branco achieved a positive performance with a growth of 0.68% (€ 121,945).
This growth puts the average selling price in Portugal at €341,145. In comparison, a year ago it was €325,840.
Évora recorded the biggest change in the last 12 months, with prices increasing by 14.83%, translating into an average value of €203,373.
Vila Real also impresses with 13.47% (€180,722 compared to € 159,265 in August 2019). These growth values are impacted by other districts where the negative variation is accentuated, as is the case of Portalegre, with -23.48%, where currently average sales prices remain at € 113,215, a considerable distance from € 147,961 in 2019.
The variation in the rental market is also tangential, however, with a negative impact. Between July and August 2020, the prices of this segment decreased by -0.57%, and set the average value at €1,053, a mere €6 lower than the previous month.
It is in Lisbon that the rental price still weighs much heavier than the national level, with an average value of €1,374. This is followed by Porto (€931), Faro (€822) and Setúbal (€816), of which only Setúbal has a positive variation (0.12%) between the two months of summer.
Now that we have entered another time of the year, it will be interesting to see what trends will guide the performance of the real estate market in the winter months of 2020, into 2021. We will certainly have some surprises and opportunities that will please all those interested in participating in one of the most relevant national economic engines.