Lisbon Property Prices Hit €5,035/m², But Odivelas Workers Face Greater Financial Burden
A detailed statistical analysis of the Lisbon metropolitan area's housing market has revealed that while the capital city posts the highest property prices, the greatest financial strain relative to income is borne by workers in the municipality of Odivelas. The report, published by Pordata, the data portal of the Fundação Francisco Manuel dos Santos (FFMS), provides a granular look at the relationship between housing costs and local earnings, a critical dataset for understanding market sustainability.
The source of the data is Pordata's comprehensive municipal database, which cross-references property transaction values from the National Statistics Institute (INE) with official employment and salary data from 2023 and 2024. The methodology involves calculating the ratio of median home prices to the average gross annual income of employees within the same municipality, providing a "years of salary" metric to gauge affordability.
The specific numerical findings for 2024 show the median price of new homes in Lisbon at €5,035 per square meter, while used homes stood at €4,207/m². In Odivelas, the median prices were €3,188/m² for new and €2,713/m² for used properties. When set against average annual salaries, a worker in Lisbon would need 18.1 years of income for a new home, whereas a worker in Odivelas would require 19.2 years, highlighting the acute affordability challenge in the suburb.
The geographic breakdown covers Lisbon and its five closest municipalities. Lisbon leads in price, followed by Oeiras (€3,995/m² new), and Odivelas (€3,188/m² new). Almada and Loures show more moderate prices but also have lower average salaries than Lisbon and Oeiras. This data is crucial for investors looking for a detailed neighborhood guide to the region's economic profiles.
Comparing time periods, the report implicitly builds on data from previous years, noting that the housing crisis has become a central theme in local politics, indicating a sustained period of price appreciation and affordability decline. The current data for 2024 represents a new peak in this ongoing trend, which is explored further in our Real Estate Market Insights Blog.
Analysis of market segments shows that all six municipalities now have median prices well above the national average of €2,147/m² for new builds. This indicates that the price pressure extends from the luxury segment in central Lisbon to the broader housing market across its entire metropolitan area. Amadora was noted for having a higher median price for used homes (€2,493/m²) than new ones (€2,430/m²), a statistical curiosity that may point to a limited supply of new construction or a high valuation of existing, well-located housing stock.
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Industry experts have commented that these statistics confirm a decoupling of property prices from local wages. An economist from a leading Portuguese bank was quoted, stating, "The market is increasingly driven by foreign investment and high-income earners, making it exceptionally difficult for the average local worker to enter the property ladder. This is not sustainable in the long term without significant housing policy intervention."
In response to the data, municipal governments across the region have acknowledged the severity of the housing crisis. The Mayor of Odivelas reportedly stated, "We are acutely aware of the financial burden on our residents. We are exploring all available options, from promoting affordable housing projects to improving transport links to make our municipality more accessible and attractive."
Historically, Lisbon's suburbs were seen as affordable alternatives to the capital. This data shows that while they remain cheaper in absolute terms, the affordability gap for local earners has, in some cases, surpassed that of Lisbon itself. This trend has been accelerating over the past five years, driven by the capital's booming tourism and tech sectors.
Pordata is expected to release further detailed analysis following the upcoming local elections, which will likely influence future housing policies. Investors and residents alike will be watching closely for any new initiatives aimed at tackling this affordability crisis. For those considering buying, understanding the investment risks associated with markets disconnected from local wages is crucial.
Stay informed on Lisbon property market developments at realestate-lisbon.com.