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February 2, 2023

Portuguese residential market

• November 2021-2022 variation in Portugal of the housing bank valuation on the flat sector was 14.92% (+3,0% than the previous period). The €/sqm maximum value on this sector was reached in November 2022 by AM Lisbon, 1,917€/sqm.   • Since the 2nd semester of 2017, the Portuguese median rent value has a compound growth […]

• November 2021-2022 variation in Portugal of the housing bank valuation on the flat sector was 14.92% (+3,0% than the previous period). The €/sqm maximum value on this sector was reached in November 2022 by AM Lisbon, 1,917€/sqm.  

• Since the 2nd semester of 2017, the Portuguese median rent value has a compound growth rate of 3,6%, reaching in the 1st semester of 2022, the maximum of 6.25€/sqm/month (+3,5% since previous semester).

• The residential yields have been compressing since 2020 and are expected to continue its decreasing. Portugal´s residential yield is at 5,35%.

• Since April 2020 (Covid Pandemic), the labour costs have been growing and stabilized at a variation of approximately 5%. As a consequence of the start of the War in Ukraine in February 2022 , the annual variation of the cost of materials reached its maximum in April 2022 with more than 20%, however, this variation has been decreasing being in last November, 15,4%.

• Rise of all Euribor’s rates on last months to values only registered in the first months of 2009. The 6M Euribor is the rate most linked to residential mortgages being at 2,9% and expected to growth on the following months.

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Article written by Miguel Anjos

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