Homes for sale in Portugal are more expensive than ever. Asking prices rose 7.5% in a year in October, according to the price index of the property portal idealista. In Madeira, prices are still among the highest in the country, but they are rising more slowly than in most other regions.
The one big exception is Porto Santo. The smaller island had the largest annual rise of any district or island in Portugal.
Madeira's Asking Prices Rose 4.2% to 3,779 Euros per Square Metre
In the Autonomous Region of Madeira, the median asking price reached 3,779 euros per square metre at the end of October. That is 4.2% more than a year earlier.
Madeira is now the third most expensive region in Portugal. Only the Lisbon Metropolitan Area (4,525 euros/m²) and the Algarve (4,231 euros/m²) cost more.
Its increase, however, was the second smallest of the country's seven regions. Only the North (3.8%) grew more slowly. The Alentejo led with 14.3%, followed by the Azores with 13.9%.
Funchal Is Portugal's Third Most Expensive City at 4,045 Euros per Square Metre
Among the 20 district and regional capitals, Funchal is the third most expensive place to buy a home. Only Lisbon (6,248 euros/m²) and Porto (4,339 euros/m²) are higher.
At the median price, a home of 100 square metres in Funchal would cost about 404,500 euros. Even so, Funchal had the smallest price rise of all 20 cities, at 3.4%.
Prices went up in every capital analysed. The largest increases were in Vila Real (20.3%), Guarda (18.4%) and Beja (17.6%).
Porto Santo Leads All 26 Districts and Islands With a 25% Rise
The picture is very different on Porto Santo. Asking prices on the island rose 25% in a year, the largest increase among Portugal's 26 districts and islands. Terceira, in the Azores, came second with 24.5%.
Porto Santo is also one of the most expensive places in the country. With a median of 4,167 euros/m², it ranks third, behind only Lisbon (4,835 euros/m²) and Faro (4,231 euros/m²).
Madeira Island Prices Up 3.7%, Among the Smallest Increases
The island of Madeira itself ranks fourth, with a median asking price of 3,765 euros/m². But its prices rose only 3.7%, one of the smallest increases in the country.
Only Porto (3.3%) and the Azorean island of Santa Maria (0.2%) rose more slowly. Faial, also in the Azores, was the only territory where prices fell, by 4.9%.
According to idealista, rises tend to be more moderate where buying a home is most expensive. It names Lisbon, Porto, Faro and the island of Madeira as examples.
Portugal's Median Asking Price Reaches a Record 3,249 Euros per Square Metre
Across Portugal, buying a home now has a median cost of 3,249 euros per square metre, a new record. Prices rose 1.2% in the last three months alone.
Idealista says the market now has fewer sales. Home prices have not kept up with wages, interest rates are rising and the rules for mortgages are stricter. Even so, demand for homes to buy is still much higher than the supply, which keeps prices going up, though at a slower pace.
Other recent data also points to high housing costs on the island. Bank valuations of homes in Madeira rose 14.3% in a year, and renters face rising costs too.
Idealista's Index Is Based on Asking Prices, Not Final Sale Prices
The figures come from the asking prices that advertisers post on idealista, based on built square metres. They are not the prices buyers finally pay.
The portal removes unusual listings and prices far from the market, as well as ads that have had no user activity for some time. It also excludes seasonal and holiday rentals. The result is the median of all valid listings in each market.
Source: idealista.pt
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