Real Estate Market in Numbers: Monthly Barometer of October

Summary

• Headline numbers:
  Average property sale prices +5.79% (YoY) compared to October 2019.
  Average property sale prices +1.12% (MoM) compared to September 2020.
  Average rental prices -10% (YoY) compared to October 2019.
  Average rental prices +1.65% (MoM) compared to September 2020.
• The average rental price of property listed on the Imovirtual website in October 2020 was 1,045€, marking an increase of 1.65% compared to the previous month (September 2020), breaking the previous downward trend of the last couple of months but still down on the same month last year.
• The average sale price of property listed on the Imovirtual website in October 2020 was 342,621€, marking an increase of 1.12% compared to the previous month (September 2020), and an increase of 5.79% compared to the same month last year (October 2019).
• Lisbon, Faro, Região Autónoma da Madeira, and Porto remain the most expensive districts to buy a property with an average listing costing 540,200€, 454,659€, 327,393€ and 306,982€ respectively.
• Lisbon saw an increase in rental prices compared to the previous month (September 2020), with 1.29%. This could suggest that some districts in Portugal have the ability to make a comeback despite this years’ Covid crisis, mainly after the summer months.

Monthly Variation: October 2020 VS September 2020

Sale | Properties announced 

The average price of properties announced on Imovirtual for sale in Portugal was 342,621€ in October 2020, thus seeing a slight increase of 1.12% compared to the previous month which registered an average price of 338,826€.

In October, the district that showed the largest increase in percentage price variation compared to September was Região Autónoma da Madeira with a 3.52% increase, with 316,257€ in September and 327,393€ in October.

The most expensive district to buy a property in Portugal is still Lisbon, with property costing on average 540,200€. Compared to the previous month the average sale price increased by 1.15%. The other three most expensive districts to buy a property are Faro, Região Autónoma da Madeira, and Porto with an increase in the average sales price, 2.60%, 3.52%, and 0.78% respectively.

The four districts that stand out for the lowest average property sales prices were Portalegre (110,803€), Guarda (121,193€), Castelo Branco (122,531€), and Beja (135,346€). Portalegre was the district with the highest percentage drop in the average price compared to September of -5.28%.

Rent | Properties announced 

In Portugal, the average price of properties advertised on Imovirtual in the rental segment increased slightly by 1.65%, breaking previous downward trends, from 1,028€ in September to 1,045€ in October.

Portalegre is the district with the highest percentage growth of 9%, compared to September, rising from 314€ to 342€. Contrary to Portalegre, Bragança shows a percentage drop in the average property price with -1%.

Lisbon continues to lead the top of the most expensive districts for renting a property, with an average rent of 1,339€. Compared to September there was a slight growth of 1.29%, from 1,322€ in September to 1,339€ in October. The districts Porto, Setúbal, and Faro are also the most expensive to rent a property with an increase in the average price announced in October, except for Porto who saw a decrease in the average price (-0.11%) from 949€ in September to 948€ in October.

The districts that in August presented a lower average price were Portalegre, Guarda, Bragança, and Castelo Branco, with 342€, 345€, 362€, and 402€ respectively.

Annual Variation: October 2019 VS October 2020

For a better analysis of the evolution of average prices, it is important to compare two homologous periods in consecutive years with a quite distinct social reality to understand the felt impact.

Sale | Properties announced 

Comparing the average prices of property advertisements on Imovirtual in October 2020 with the same period in the previous year, there was an increase of 5.79%, rising from 323,866€ to 342,621€. 

The district with the highest percentage variation was Évora (14.41%), with the average price rising from 169,463€ in the same period of the previous year to 193,889€ in 2020, a difference of 24,426€. Portalegre remains the cheapest district to buy a property, with the average price of properties announced in October 2020 being 110,803€. 

Thus, Portalegre is one of the districts with the highest percentage drop in the period considered with -22.66% (from 143,260€ in 2019 and 110,803€ in 2020).

Rentals | Properties announced 

In the rental segment, rental prices have decreased since 2019, with a percentage decrease of -10%, comparing the average prices announced for October 2020 (1,045€) with the same period of the previous year (1,157€).

The districts with the largest percentage drop were Bragança with -29.02% (from 510€ to 362€), Porto with -13.58% (from 1,097€ to 948€), Lisbon with -11.15% (from 1,507€ to 1,339€), and Região Autónoma da Madeira with -10.29% (from 875€ to 785€).

Contrary to these decreases, Beja recorded the highest percentage increase of 25.22% in the average price announced, moving the average monthly rent from 448€ to 561€ in October 2020, but doesn’t include the most expensive districts to rent.

The average price of advertisements for rent in Portugal has fallen sharply since January 2020 and has remained throughout the rest of the period, analyzing a constant pace with slight fluctuations. However, from April onwards the trend started to become more pronounced and has continued to the present day.