Have you recently moved to Lisbon, Portugal? Are you looking to purchase a new house in Lisbon? If that is the case then you have found yourself coming to the right article.
Here, we will be helping you decide the average house price in the capital of Portugal, Lisbon. So without any further ado let’s dive right into it.
Rising rates
Many people out there do not know this, but Portugal’s real estate enterprise has evolved since 2021, with house costs rising 13.8% and more plots being purchased in small towns.
Not just that, but the overall population of Portugal is increasing at a fast pace. For the investment of real estate under Portugal’s resident permit program for investment starting in January 2022, new rules will be in effect to help future investors who are willing to purchase homes for a reasonable price.
In these cities, the demand for commercial real estate increased by 20%. In Portugal, the cost of buying a residential home rose by 13.8% in 2021 which is astounding. The rise in pricing was merely 5% a year earlier, which is shocking to hear, considering it increased by 7%-8%.
Housing costs 2,000 € on average per square meter in January 2022. Real estate value in new construction is 1.5 times greater than in the secondary market, with an m2 value of 3088 euros compared to 1871 euros in the previous year.
Prices and cost
It is worth mentioning that Investing in real estate may be beneficial as it offers the chance to create a “haven” in a tranquil country like Portugal. As we have just mentioned, Portugal’s average price per square meter is €2,950.
If you are not a citizen of Portugal and want to be eligible for a Portugal Golden Visa, then you must purchase property for at least €280,00. A lavish home on the coast, however, costs at least €100,000.
This type of house comes with many benefits, both in the long run and short term. Since the overall economy of Lisbon is rising, Portugal is getting better and more citizens are choosing to buy houses, which is why the housing demand that you purchase now will likely increase. This will earn you a great profit if you are interested in investment programs.
Houses and luxury villas
If you are someone who wishes to purchase a house in Portugal but is unable to do so in Lisbon, then you could easily find other places that are near the capital.
For $500,000 or $600,000, one may purchase a cozy home in Lisbon with countless benefits, such as losing interest rates, reasonable advance payment, in-house attractions, and so much more.
Perhaps the main reason why many people purchase these houses is that these will be cozy suburban homes with up to 400 square meters, three or four bedrooms, and up to 2,500 square meters of manicured property.
These homes also come with a parking lot, patio, and private pool. The homes often have heating and cooling systems, as well as solar panels. There are many lisbon portugal real estate that offers to help you when buying an average house.
Rental prices
After seeing this, if you feel like the house prices are out of your budget, then you could opt for the safer option which is rental. With an average rise of 13.1% this year compared to the same period last year, rental prices increased more than sales prices this year.
Lisbon outperforms the rest of the group in terms of positive variance in annual rent rise at around 23.2 percent. It may be shocking to know that supply of rental homes has decreased, with the number of adverts falling by, on average, 32%. Lisbon had a 52.3 percent decline in the number of property listings, making it the most affected capital.
Reasons for high prices
Now just like everyone, you might be wondering why precisely have the prices increased to such an extent in Lisbon. Well, the answer to that is an easy one. With a median price of 3,757 euros/m2 in the first three months of 2022, Lisbon is still the municipality with more than 100,000 residents.
Nearby is Porto, with an average rate of 2,495 euros/m2, Oeiras at 2,873 euros/m2, and lastly, Cascais, with a rate of 3,300 euros/m2 in recent times. The main reason why the prices have increased at a tremendous rate is that foreigners living in Lisbon and other parts of Portugal pay more than the citizens themselves.
The living costs and standards have increased in the capital of Lisbon, which is why it has become a norm to have fluctuating rate patterns.
Buying small houses in Lisbon
If you’re seeking to buy a house in Lisbon but at an affordable rate, then you could easily look for cozy flats in the interior, which are available for $125,000, albeit they could require some remodeling. This is something that many people do not consider when they look for affordable houses to purchase in a country such as Europe.
However, do not be disappointed, as even in downtown Lisbon, you may be able to find modest, studio-style flats in distant areas for about $150,000. It is worth mentioning that in Portugal, closing fees for real estate transactions typically amount to 10% of the purchase fee.
Keep in mind that the typical apartment size in Portugal, as well as the rest of Europe, is far smaller than what many North Americans are used to. A single individual or a couple is seen to be perfectly content in a 550-square-foot flat. This size of the house is more than enough for them considering that they both have an income of around €2000 to -€2,500.
On the other hand, if you have a family, then you might want to consider buying a bigger house. A modest family could find a 1,000-square-foot apartment with three or even four bedrooms ideal.
The good news is that you may spend a lot of your free time outdoors, whether it is at the beach, a café or any other place. Many people are willing to spend the extra cash on their monthly rent just to experience a lifestyle full of educated people, tourist sites, and career goal opportunities.
The takeaway
So there you go, folks! Now you know how much an average house price in a country such as Portugal costs. It must be mentioned that several factors increase or decrease the price of houses in the Capital of Portugal, Lisbon. Knowing what you want with the budget you have could help you find a comfortable and safe residence.
