Portuguese Real Estate Continues to Soar

Portuguese real estate prices are continuing to rise, driven by the capital Lisbon, and show no sign of slowing down.

Property prices in the capital have risen by 15 per cent over the last year to an average of 2,231 euros per square metre, helping to boost the national average to 896 euros per square metre.

Lisbon is unsurprisingly the most expensive place for Portuguese real estate, followed by Porto and the Algarve.

To find Portuguese real estate bargains, overseas property investors would have to look towards central Portugal, where the Beiras and Serra da Estrela offer the cheapest Portuguese real estate available.

These latest figures are from an in-depth report by newspaper Correio da Manhã, based on new figures from the National Statistics Institute (INE).

The report shows that the new national average price for Portuguese real estate of 896 euros represents a rise of 6.4 per cent year-on-year.

Some areas have fared much better than this however.

The most expensive area in the heart of Lisbon along the Avenida da Liberdade or Marquês de Pombal has seen a huge increase of 46.1 per cent over the past year, reaching an average price of 3,294 euros per square metre.

Other places such as Cascais, Loulé and the Algarve town of Lagos all have prices that are above 1,500 euros per square metre.

Indeed, almost the entire Algarve region now has prices ranging between the national average of 896 euros to as much as 1,231 euros per square metre. Only the municipalities of Monchique and Alcoutim fall below that price range.

The weather, culture, and indeed the Golden Visa scheme attracting overseas property investors to Portugal have all combined to make Portuguese real estate soar in price over recent years, and there appears to be no end in sight.

Overseas property investors may want to widen their search in Portugal, as the difference in floor space cost for Portuguese real estate can be well over 2,000 euros per square metre.