Property Index 2018 

Property Index, with its six-year history, has become one of the most important European real estate publications. It analyses factors influencing the development of residential markets and compares residential property prices in selected European countries and cities.

This publication was prepared by a proven international and cross-functional team of Deloitte professionals in the development, mortgage and real estate markets using data collected by individual Deloitte offices in selected countries.

Portugal at Property Index 2018

Throughout 2017, the residential market remained highly dynamic. Similar to the previous year, this dynamic was most felt in the city centre of Lisbon and Cascais Coastal zone.

Tourism and, more specifically local accommodation establishments, have now an unprecedented impact on residential market, since their levels represent the quality of life and value of real estate in Portugal. Additionally, the establishment of foreign communities whether investors or citizens, who have decided to live and invest in Portugal, are factors that have positively impacted the level of external demand.

Residential assets registered an increase of almost 60,000 transactions between 2011 and 2017 in Portugal, according to the National Statistics Institute. To answer to this massive international flow, luxury residential developments emerge in these areas and prices tend to be increasingly high (median transaction price, old and new apartments, of 2,438 EUR/sq m in Q4 2017 in Lisbon city, an increase of 18% when compared to Q4 2016. In Q1 2018, luxury areas such as Avenida da Liberdade, reached an average transaction price of 6,532 EUR/sq m), forcing the relocation of the Portuguese people to the surrounding areas of the city. In order to re-establish the balance in the different areas of the cities, where gap prices are huge, a rethinking of the public and private policies to accommodate this new demand to the needs of the Portuguese population is required.

Key figures:

Average Transaction Price of the New Dwelling in 2017:

• Lisbon- 3,004€/sqm (+10% in comparison with 2016)
• Porto- 1,613€/sqm(+ 8,7% in comparison with 2016)

Average Monthly Asking Rent/sqm in 2017:

• Lisbon- 9,6€/sqm (equal to Vienna and superior to Berlin or Valencia)
• Porto- 6,8€/sqm

Average mortgage rate in 2017:

• 1,0% (the lowest amongst the countries in the report)