MVGM Report: Porto Real Estate Market Expands as Lisbon Prices Show Stabilization
A new quarterly report from the real estate consultancy MVGM has highlighted a significant divergence in the performance of Portugal's two main residential markets. While Lisbon is showing signs of price stabilization after a prolonged period of intense growth, the Porto market is characterized by robust and dynamic expansion, particularly in the rental segment. The data indicates a maturing market in the capital and a consolidation of Porto as an increasingly attractive alternative for both residents and investors.
According to the MVGM analysis, the average sale price in Lisbon reached €6,650 per square meter, reflecting a moderate quarterly increase of just 0.5%. The year-on-year valuation stands at 6%. In the city's rental market, there was a slight quarterly decrease of 0.4%, with the average price per square meter settling at €22.4, which still represents a 3.3% increase compared to the same period last year. These figures suggest that the capital's market, while still valued, is entering a phase of less aggressive growth.
In contrast, the city of Porto recorded a more substantial quarterly increase in sale prices of 1.2%, bringing the average value to €4,094 per square meter. The annual appreciation in Porto was a remarkable 10.5%, significantly outpacing the capital. The rental market in Porto demonstrated even greater dynamism, with a quarterly price increase of 5.7% and an annual rise of 11%, culminating in an average rental value of €17.4 per square meter. This data confirms a clear trend of growing demand and strong valuation in the northern metropolis.
Ana Luisa Santos, Head of Residential at MVGM Portugal, commented on the findings, stating, “These data reflect a stabilization of the market in Lisbon, after a period of strong appreciation, while Porto continues to affirm itself as an attractive alternative, with more accentuated growth, especially in rentals.” She further elaborated that while the overall demand for housing in Portugal remains high, the cost dynamics are showing clear regional adjustments, particularly in Lisbon. Santos anticipates that this trend of stabilization in Lisbon and accelerated growth in Porto will likely persist in the upcoming quarters.
The report concludes that the Portuguese residential market continues to demonstrate considerable resilience. The evolution of these two key markets underscores the need for increasingly sophisticated and regionally adapted real estate management strategies. The transformation of the sector, driven by these distinct regional trends, presents both challenges and opportunities for developers, investors, and property managers. The data suggests that a 'one-size-fits-all' approach to the Portuguese property market is no longer viable, with Porto's growth trajectory now firmly distinct from that of the more established Lisbon market.
Stay informed on Lisbon property market developments at realestate-lisbon.com.
