Compared to the month of March last year, the price for a house in Portugal increased by almost 6%. Buying a home now costs an average of €2,181 per square metre, says the Portuguese property site Idealista.

The sharpest price hike was in the Algarve, increasing by 6% in the last 12 months (€2,387 per sqm). The region was followed by the Metropolitan Area of Lisbon and the archipelago of the Azores. Only the Alentejo region registered a drop in property prices, at 2.3%.

In this first quarter of 2021, the sales price of residential properties has already increased by 17.4%. At the same time, the number of available properties in Portugal rose 87.8%. However, a drop in house prices is forecast with the end of the moratoriums in September (read more). 

Rentals double 
With property prices increasing gradually over the past year, more people in Portugal are opting to rent, confirming the recent trend here. According to a global analysis by Casafari, the supply of rental properties have doubled (101.1%) compared to the same period last year, leading to a substantial drop in rental prices.

Casafari's data shows that, due to the pandemic and a subsequent decrease in tourism nationwide, the average rental prices have dropped by 9.4%. The average rental price in Portugal is now €842. 

The specialists at Algarve Home Sales provide expert advice on investing in a property in Portugal. Get in touch with the team here for further information.