The Portuguese real estate market has grown significantly in recent years, particularly in major cities such as Lisbon and Porto. Portugal has become a destination of choice for foreign property investors, attracted by relatively low prices, favourable taxation and a pleasant climate.
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Portuguese real estate market in 2022: some figures
It is difficult to give precise figures on the property market in Portugal in 2022, as it depends on many factors such as location, type of property, demand and supply in the market.
However, here is some general information about the Portuguese property market in 2022:
- According to data from the National Housing Agency (ANH), residential property prices increased by an average of 4.7% in Portugal in 2021. This increase is mainly due to high demand, especially from foreign investors.
- The most expensive cities in the country remain Lisbon and Porto, where flat prices rose by 5.6% and 6.2% respectively in 2021. The coastal regions of the Algarve and Alentejo are also experiencing strong demand, with prices up by 4.9% and 4.3% respectively.
- The commercial and professional real estate market is also experiencing significant growth, with office vacancy rates falling and rents rising in major cities. According to data from the Portuguese Association of Real Estate Companies (ASPI), the office vacancy rate reached its lowest level in 2021, with rents rising by 5.6% in Lisbon and 7.5% in Porto.
It is important to note that these figures are indicative and may vary depending on many factors.
Real estate market prices in 2022 in Portugal
Let’s take a look at some indicative figures for the property market in Portugal in 2022, in the 3 most representative areas of the country: Lisbon the capital, Porto in the north and the Algarve in the south of the country. Although the figures are accurate, they are not representative of the whole region. There can be large variations between the main city of the region and the surrounding towns, which can also lead to good property deals.
Real estate market prices in Lisbon
It should be noted that prices vary greatly from one area to another. Below are the average property prices in Lisbon for the most sought after areas, but on average, the price per sqm in Lisbon is 3843€/m² in November 2022, which is an increase of 3.6%.
- Property prices in the Ajuda district of Lisbon in November 2022: 4183€/m², which represents an increase of 5.5% compared to November 2021.
- Property prices in the Alcântara district of Lisbon in November 2022: 6841€/m², which represents an increase of 28.6% compared to November 2021.
- Property prices in the Areeiro area of Lisbon in November 2022: 4593€/m², which represents a decrease of 0.3% compared to November 2021.
- Property prices in the Avenida Novas area of Lisbon in November 2022: 6470€/m², which represents an increase of 6% compared to November 2021.
- Property prices in the Belém area of Lisbon in November 2022: 6407€/m², which represents an increase of 6.2% compared to November 2021.
- Property prices in the Campolide area of Lisbon in November 2022: 5848€/m², which represents a decrease of 0.6% compared to November 2021.
- Property prices in the Estrela area of Lisbon in November 2022: 6191€/m², which represents an increase of 18.5% compared to November 2021.
- Property prices in the Parque das Nações area of Lisbon in November 2022: 5769€/m², which represents a decrease of 5% compared to November 2021.
- Property prices in the Santa Maria Maior area of Lisbon in November 2022: 5832€/m², which represents an increase of 2.2% compared to November 2021.
Property market prices in Porto
As in Lisbon, property prices in 2022 in Porto vary greatly from one area to another. Below you will find the prices for the most representative areas, but in November 2022 the average price for a purchase in Porto is 2390€/m², an increase of 5.2% compared to November 2021.
- Property prices in the Aldoar – Foz do Douro – Nevogilde area of Porto in November 2022: 4204€/m², which represents an increase of 14.3% compared to November 2021.
- Property prices in the Bonfim district of Porto in November 2022: 3113€/m², which represents an increase of 5.3% compared to November 2021.
- Property prices in the Campanhã district of Porto in November 2022: 2660€/m², which represents an increase of 1.4% compared to November 2021.
- Property prices in the Lordelo do Ouro e Massarelos area of Porto in November 2022: 3484€/m², which represents an increase of 1.7% compared to November 2021.
- Property prices in the Paranhos area of Porto in November 2022: 2865€/m², which represents an increase of 3.5% compared to November 2021.
- Property prices in the Ramalde district of Porto in November 2022: 2750€/m², which represents an increase of 17% compared to November 2021.
Real estate market prices in the Algarve
For the Algarve, I will focus on the big cities like Albufeira, Faro, Lagos and the Others. Overall in the Faro district which includes all these Concelho, the property price in November 2022 is 3044€/m², an increase of 17.7% compared to the property price in November 2021:
- Albufeira property prices in November 2022: 3006€/m², which is an increase of 16% compared to November 2021.
- Property prices in Faro in November 2022: 2542€/m², which represents an increase of 17.5% compared to November 2021.
- Lagos property prices in November 2022: 3449€/m², which represents an increase of 20.8% compared to November 2021.
- Property prices in Olhão in November 2022: 2570€/m², which represents an increase of 18% compared to November 2021.
- Property prices in Portimão in November 2022: 2362€/m², which represents an increase of 6.6% compared to November 2021.
- Property prices in Tavira in November 2022: 2807€/m², which represents an increase of 21% compared to November 2021.
The Portuguese property buying market in brief
The residential property sector has seen a significant rise in prices in recent years, but it remains affordable compared to other European destinations. In addition, Portugal offers a wide variety of properties, ranging from modern flats to traditional houses, villas and luxury properties.
The commercial and professional property market is also growing, with many opportunities to invest in shopping centres, hotels, offices and industrial land.
Portugal has also introduced residency and citizenship programmes for foreign property investors, offering tax benefits and easy access to the European Union.
In summary, the Portuguese real estate market is growing rapidly and offers many opportunities for foreign investors looking for a prime destination to purchase a second home or investment property.
Rent prices in 2022 in Portugal
Below are the variations in rental prices in Portugal in November 2022, compared to November 2021. Prices vary according to the type of property, location and other criteria, of which there are many. The following is an indicative average for the most representative areas, which are the capital Lisbon, the north in Porto and the main cities in the Algarve.
It should be noted that in Portugal as a whole, the price of rents in November 2022 is 12.5€/m², i.e. an increase of 16.3%.
Rent prices in Lisbon in 2022
If you want to come and live in Lisbon, it is worth noting that the average rental price has risen by 29.3%, i.e. a price of 17.3€/m² for renting a property. Let’s have a look at the details of the rent prices in 2022 in some of the most representative areas of Lisbon:
- Rental prices in the Ajuda district of Lisbon in November 2022: 17.4€/m², which represents an increase of 34.2% compared to November 2021.
- Rental prices in the Alcântara district of Lisbon in November 2022: 16.4€/m², which represents an increase of 26.5% compared to November 2021.
- Rent in the Areeiro area of Lisbon in November 2022: 15.2€/m², which represents a decrease of 30.4% compared to November 2021.
- Rental prices in the Avenida Novas area of Lisbon in November 2022: 18.6€/m², which represents an increase of 39.3% compared to November 2021.
- Rent in the Belém area of Lisbon in November 2022: 16.5€/m², which represents an increase of 22.9% compared to November 2021.
- Rents in the Campolide district of Lisbon in November 2022: 17.8€/m², which represents a decrease of 32.2% compared to November 2021.
- Rents in the Estrela district of Lisbon in November 2022: 20.1€/m², which represents an increase of 36% compared to November 2021.
- Rent in the Parque das Nações area of Lisbon in November 2022: 16.8€/m², which represents a decrease of 25.7% compared to November 2021.
- Rental prices in the Santa Maria Maior district of Lisbon in November 2022: 24.4€/m², which represents an increase of 44.8% compared to November 2021.
Rent prices in Porto in 2022
For those who wish to rent in Porto in 2022, you should know that the rental prices for the month of November 2022 are up by 26.9% for a price per m² of 13.4€. Let’s analyse the figures for this increase in rental prices by district:
- Rental prices in the Aldoar – Foz do Douro – Nevogilde district of Porto in November 2022: 15.9€/m², which represents an increase of 31.7% compared to November 2021.
- Rental prices in the Bonfim district of Porto in November 2022: 12.6€/m², which represents an increase of 25.8% compared to November 2021.
- Rents in the Campanhã district of Porto in November 2022: 12.4€/m², which represents an increase of 28.9% compared to November 2021.
- Rents in the Lordelo do Ouro e Massarelos district of Porto in November 2022: 11.6€/m², which represents an increase of 11.1% compared to November 2021.
- Rent prices in the Paranhos district of Porto in November 2022: 11.6€/m², which represents an increase of 14.5% compared to November 2021.
- Rental prices in the Ramalde district of Porto in November 2022: 10.6€/m², which represents an increase of 18.2% compared to November 2021.
Rent prices in the Algarve in 2022
In the Faro district, which represents the main concelho such as Albufeira, Faro or Portimão, rental prices are also rising sharply in 2022 as they are throughout Portugal. It will be necessary to count a rental price in 2022 of 11€/m², up by 12.1% compared to 2021.
- Rental prices in Albufeira in November 2022: 10.2€/m², which represents an increase of 17.3% compared to November 2021.
- Rental prices in Faro in November 2022: 9.3€/m², which represents an increase of 3.2% compared to November 2021.
- Rent in Lagos in November 2022: 11.4€/m², which represents an increase of 17.6% compared to November 2021.
- Rental prices in Olhão in November 2022: 10.7€/m², which represents an increase of 25.2% compared to November 2021.
- Rental prices in Portimão in November 2022: 10.4€/m², which represents an increase of 22.3% compared to November 2021.
- Rental prices in Tavira in November 2022: 10.3€/m², which represents an increase of 15.6% compared to November 2021.
Rent prices in Portugal in 2022 in summary
The rental market in Portugal has grown significantly in recent years, particularly in the major cities such as Lisbon and Porto. The country has become a destination of choice for students and foreign workers attracted by the quality of life and relatively low cost of living.
The residential rental sector is experiencing strong demand, with rents rising in the major cities. According to data from the Portuguese Association of Real Estate Companies (ASPI), rents rose by 5.6% in Lisbon and 7.5% in Porto in 2021. This increase is mainly due to strong demand, especially from foreign investors.
The commercial and professional rental market is also growing, with strong demand for office and commercial space in major cities. According to data from the Portuguese Association of Real Estate Companies (ASPI), the office vacancy rate reached its lowest level in 2021, with rents rising by 5.6% in Lisbon and 7.5% in Porto.
In summary, the rental market in Portugal is growing and offers many opportunities for investors and tenants looking for a residential or commercial rental in a prime destination. However, it is important to note that rents tend to be higher in the larger cities and in the more popular areas.
