In the 2nd quarter of 2022, median house price of dwellings sales in Portugal was 1 494 €/m2, representing a year-on-year growth rate of +17.8% (+17.2% in the previous quarter). There was an increase in median house prices compared to the same period in the previous year, in all the 25 NUTS 3 of the country.
The two sub-regions with the highest median house prices - Algarve (2 258 €/m2) and Área Metropolitana de Lisboa (2 076 €/m2) - also had the highest values in both categories of purchaser's tax residence: national territory (respectively, 2 222 €/m2 and 2 050 €/m2) and foreign (2 734 €/m2 and 3 782 €/m2).
In the 2nd quarter of 2022, in seven out of the 24 municipalities with more than 100 thousand inhabitants the prices decelerated, with Lisboa standing out (-6.1 p.p.). In contrast, the year-on-year rate of change increased in six of the 11 municipalities with more than 100 thousand inhabitants in the Área Metropolitana de Lisboa, with Loures standing out (+8.8 p.p.). In the Área Metropolitana do Porto, there was also an increase in the year-on-year rate of change in four of the six municipalities with over 100 thousand inhabitants, particularly in Porto (+9.2 p.p.) and Matosinhos (+5.3 p.p.).
The analysis of the relationship between house purchase prices and rents of new lease agreements (12 months ending in the 2nd quarter of 2022), suggests a relative overvaluation of rental values, in comparison to house prices, in most municipalities of the metropolitan areas and, on the contrary, a relative undervaluation of rents in most municipalities of the Algarve. The analysis of the evolution of the rental and acquisition markets dynamics’ showed a relative growth of the transaction market compared to the rental market. This trend was seen in most of the municipalities of the Área Metropolitana de Lisboa and the Algarve, but not in 10 of the 17 municipalities of the Área Metropolitana do Porto.