Property Prices

Evolution of the real estate prices in Lisbon

Year 2014 was the turning point for the Portuguese real estate sector

 

Housing prices in the Greater Lisbon area increased by 4.4%, according to the study "Housing Market in Portugal 2005-2015" presented by Prime Yield, a real estate asset consultancy. This study aims to survey the housing situation of the past ten years.

 

2014 was the turning point for the Portuguese real estate industry, which led to the reverse of the sector's declining trend in prices in the buying and selling transactions and real estate investment. The housing sector in Portugal has been marked by several fluctuations since 2005 in the price of real estate, due to the strict legislative changes in the legal regime, restrictions on housing loans and the national economic crisis in 2008.

 

In the metropolitan area of Lisbon, by 2015, the average price of houses increased by 4.4% when compared to the offer values in 2005. Ten years ago, in the beginning of 2005, the average value of m2 in Greater Lisbon was 1,268 euros, increasing to 1,324 euros per m2 in the first quarter of 2015.

Graph - Sales prices per square meter in Lisbon

The Portuguese housing market has a low volatility, with annual average prices never increasing by more than 8.6%, nor reaching negative peaks greater than -8.1% over the last ten years. In Greater Lisbon was observed the highest increase in 2015 , which is 8.6% (1324 euros per m2) compared to the previous year (1210 euros / m2). Since 2005, the biggest price decline observed in this area was in 2012 with a fall of 8.1% compared to the previous year (from 1130 euros / m2 to 1210 euros / m2).

 

From 2005 to 2008 the pricing trend in Lisbon was to rise, and from that year until 2011 there was a maintenance of the price offer. From 2011 until the end of 2012 there was an exponential decrease in the average price of housing, due to the fall in purchasing power and the contraction of consumption caused by the financial crisis. In 2013 there was a recovery in the growth trend, albeit below the prices recorded between 2005 and 2008.

 

Graph source: Nuroa