Rates in the Real Estate Sector 2020
The world scenario has changed in recent months, leading to a drastic change in most sectors. In real estate there was no exception, this being one of the most promising sectors in Portugal, adaptations were inevitable.
Generally, there were no negative changes in the properties rates, with the biggest changes happening mainly in the interaction with the client and in the characteristics of the most sought-after properties. As in all sectors of our economy, real estate lives with some uncertainties, but it maintains confidence and considers all the transformations necessary for the business to prosper. If before there were some doubts regarding the use of digital tools in real estate agencies, today their use is perennial.
There was a 10.3% increase in the value of homes sold in Portugal in the first quarter of 2020, compared to the same period of the previous year. There was an increase of 5% of the villa’s values and 1.12% of the apartments, in the first six months. A significant slowdown in the second half of March and April, when the restrictions of the emergency state in Portugal were imposed, worried the sector, but slowly the business stabilized again. In March there was a reduction of 3.3% in the total values compared to the same month of 2019.
The Lisbon district continues to lead as the most expensive district in the country, with a value of 3,549 euros per sqm, followed by the Faro district with a value of 2,270 euros per sqm and Oporto with 2,143 euros per sqm. Lagos was the only city in the Faro district where there was a drop of 0.18% in house values.
The existing properties, i.e. second-hand properties, were the ones where the price increased, reaching 5.4 billion sales. The new constructions, on the other hand, had a lower value of 1.4 billion. This tendency went against the values practiced in 2019, wherein the previous year the new buildings win. The percentages presented by INE are of 15.7% for new houses and 9.1% for second-hand properties.
The lowest rental prices in the last six months have occurred in the districts of Lisbon, Oporto and Faro as a result of the increase in supply. This shortfall was due to the economic downturn in short-term rents. These occurrences were most significant in the district of Oporto, followed by Lisbon and the least perceptible was in the Faro district.