August marked a record in the residential market: in mainland Portugal, house sale prices rose 21.6% year-on-year, representing the largest increase in the last 40 years, according to the Residential Price Index from Confidencial Imobiliário.
The previous record was set in November 1991, when housing prices in the country rose by 21.1% year-on-year. In a more recent time frame, the sharp rise in prices is equally evident, given that the 21.6% recorded in August compares with 11.0% at the end of 2024, i.e., an increase of 10.6 percentage points in this indicator, which means doubling the rate of increase in just eight months.
This new level of growth reflects a pattern of strong monthly increases recorded throughout this year, where, with the exception of May, chain variations remained around 2%. In May, prices stabilized in monthly terms, showing a chain variation of 0.2%, but the summer period did not confirm this behavior, returning monthly variations to previous levels, as shown in August with a 1.8% increase in prices compared to July.
Sales volume reaches around 41,000 homes between June and August
According to data from Confidencial Imobiliário, demand remains at the solid levels seen in recent quarters, with sales volume projected to reach around 41,000 units between June and August, according to data from the SIR-Residential Information System. This is similar to transaction levels in the first two quarters of this year.
In the period from June to August, homes were sold at an average price of €2,753 per square meter, reaching €3,453 per square meter in the new housing segment and €2,629 per square meter in the used housing segment.
Image credits: © Jakub Zerdzicki | Unsplash
Translated with DeepL.com (free version)
