figueira_de_castelo_rodrigo.jpg

House prices “off the scale” in 41 Portuguese municipalities

Statistics institute INE has once again released figures to show that house prices in Portugal are rising rapidly, particularly in 41 municipalities.

Lisbon, Porto and the Algarve are the regions where prices continue to exceed national averages.

And for homeowners in the Algarve, almost every borough has been touched by the boom.

Says tabloid Correio da Manhã this morning, the only places where prices have not skyrocketed as much as their neighbours are Monchique and Alcoutim.

Thus, from Aljezur in the west – a relatively new addition to the real-estate limelight – to Castro Marim and Vila Real de Santo António in the east, it’s all systems go.

In Aljezur, for example, agents say demand has reached the point where “townhouses walk in one day and out the other”.

In price terms, INE shows that the most popular spots sell for anything from €896 to €2,231 per sq metre – a growth on last year’s averages of 6.4%.

Lisbon’s centre is still the most expensive location, with the prices generally increasing 15% on the same period last year.

But what is interesting about the story today is that “old properties” are now selling for “almost the same” prices as new builds.

Predictably, the areas where prices are lowest correspond to those that have been dogged by summer wildfires – only Viseu and Vila Real command prices of between €600-€896 per sq metre in a landscape of areas where prices are considerably lower.

The ‘cheapest regions’ are those of the Beiras and Serra da Estrela (seriously blighted by forest fires), with the municipality commanding the lowest prices in the country (€106 per sq metre) being Figueira de Castelo Rodrigo (picture above).

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