House prices remain stagnant despite Lisbon rise

House prices have not increased for four consecutive months in mainland Portugal, according to data from the National Statistics Institute (INE).

In July, the average value assessment of housing was placed at €1,014 per square metre, which was identical to the previous month but represented a 1.8% decrease compared to the same period in 2012.

The INE said that the most significant contribution to the decrease of the total average across the country compared to the previous year came from the north, where the average value dropped 3.6% to €879 per square metre.

Additionally, prices decreased in the central regions as well as in the Alentejo and the Algarve. The Algarve saw its average value decrease 7.1% to €1,222 per square metre, while the centre is where the value is lowest, at €844 per square metre.

The evolution of prices was different, however, in the metropolitan areas of Lisbon and Porto. Porto registered a 0.6% decrease compared to June and saw the cost per square metre drop to €938. In Lisbon, the cost was placed at €1,218 per square metre, representing a 1.8% increase compared to the previous month and the third month in a row of rising prices.

The average value of housing assessments in Lisbon had not surpassed the €1,200 mark since December 2012.