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Foreigners are inflating houses in Lisbon and Porto

The average price of family housing in Portugal increased again in the second quarter, reaching 1,629 euros/m2. According to an analysis published by the National Statistics Institute (INE), the purchase of real estate by foreigners is driving up prices in the Lisbon and Porto metropolitan areas, with the amounts paid by them significantly exceeding the amounts paid by residents.

The highest house prices were recorded in the Algarve, Madeira and the metropolitan areas of Lisbon and Porto. But analysis by tax residence shows that in the metropolitan areas of Porto and Lisbon, the median price of transactions carried out by foreign buyers was, respectively, more than 61.3% and 91.6% higher than the price for national residents.

Globally, family accommodation prices rose 9% in the April-June period compared to the same period last year and 7.6% compared to the previous quarter. Growth was recorded in 19 subregions, notably Madeira and Medio Tejo, where growth was 24.9% and 15.7% respectively.

In the case of home purchases by foreigners, the average price recorded in the second quarter was set at 2,409 euros/m2, while the price for Portuguese residents was set at 1,588 euros/m2, according to INE.

Meanwhile, the financial rating agency Moody’s, in a study cited this Wednesday by Eco magazine, concludes that it takes more than 15 years of salary to buy a house in Lisbon.

Author: Raquel Oliveira
Source: CM Jornal

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