The Covid-19 pandemic changed the way we live, closed the world at home and stirred the waters of all economic and financial markets. And this Friday, March 11, 2022, it is exactly two years since the World Health Organization (WHO) classified Covid-19, caused by a new coronavirus, as a pandemic. And what changed from there to here in real estate Portuguese? Contrary to what might be expected at the outset, the market has shown strength and resilience, and the maximum number of transactions has even been recorded, for example.
Even in a scenario of public health crisis, prices of houses for sale in Portugal did not stop growing between 2019 and 2021.
This is what the report's figures show: the unit price of homes to buy rose by 14.6% in that period, setting at 2,325 euros per square metre (euro/m2) in December 2021. This is 8.3% higher than at the end of 2020 (EUR 2,147/m2). And although January 2022 started with a slight drop in prices compared to December 2021 (-0.9%), buying a house in Portugal became more expensive (+1.3%) the following month, reaching 2,335 euros/m2 in February 2022.
And how did house rents evolve?
There is also a before and after pandemic, although different. Previously, in 2019, owning a house cost 11.5 euros/m2. At the end of 2021, the value of monthly rents increased to 10.7 euros/m2, i.e., it decreased almost 7% in two years. Compared to 2020, rents fell 4.3%. "This negative variation reflects the trend that began in 2020 that has slowed down the tension in the rental market, but has been reversing in recent months in some districts," the document reads. At the start of 2022, rent slated 0.9% more expensive in January 2022 compared to the previous month and 0.7% in February 2022, the latest data from the idealist show.
To read the article in full -- > Demand for homes skyrocketed and supply fell. Why? The annual idealist/date report on residential real estate responds.