INE reported that by the end of 2021, the annual rate of price change had increased in seven out of eleven Greater Lisbon area municipalities with over 100,000 residents, with increases in Setúbal (+9.8%), Loures (+3.0%), Almada (+2.2%), and Oeiras (+2.1%) exceeding the rate of change seen at the national level (+1.9%).
Municipalities in the Porto Metropolitan Area, including Maia (+10.5%) and Vila Nova de Gaia (+8.1%), also saw greater year-on-year growth than Portugal. For example, “the acceleration was less expressive” in Lisbon (+0.4%) and Oporto (+0.9%).
Additionally, the high demand for high-end and luxury products has persisted in previous years, and this trend is expected to continue.
Supply may continue to fall short of demand for various reasons, including slow licensing processes in most National City councils and increased difficulty in obtaining construction credit.
House prices in Portugal have been volatile because of the coronavirus pandemic, creating an ideal buying environment for foreigners in 2021.
A recent article in The Portugal News reported that Portugal’s general cost of living would increase by 13.8% in 2021.
In addition, PWC has ranked Lisbon as the sixteenth most appealing city to make Real Estate investments in 2022. Not only have home values rise, but so have rental profits.