The waterfront, cheerful crowds of strolling tourists and locals, street music, the smell of fried fish, cheeky seagulls, port wine and "green wine" - the components of a great mood can be listed endlessly. How to feel at home in this fabulous life? One option is to settle in Porto! This article will introduce you to the Porto real estate market, namely the prices of buying houses and apartments, their rates for long-term rentals, as well as their short-term tourist rentals.
The name Porto can refer to quite a large area. First, it is the region of Porto (Distrito do Porto), which includes 18 municipalities, and there is the city of Porto (Município do Porto), which is one of the municipalities. The city of Porto includes 7 districts. In the following, we will look in detail at real estate prices in each municipality of the District of Porto, as well as in each district of the city of Porto.
The dynamics of real estate prices in the district of Porto
We will start our research with Idealista.pt, one of the main real estate search sites in Portugal. Idealista gives static data on the change in the average cost per square meter of real estate from the listings published on the site.
At first glance on the charts, the change over the year in terms of sales is not strong, and the increase in rents is somewhat more pronounced. Next, we break down the information on both sales and rents in detail.
Real estate for sale in the municipalities of Porto County
The table above shows the average price per square meter of real estate whose listings have been published on Idealista.pt (columns 1-3). Column 4 shows how the price has changed over these three months: by how much it has risen or fallen. Column 5 shows the change over the calendar year. The municipalities in the table are arranged in descending order of average price per square meter in April 2023.
The price per meter is the highest in the municipality of Porto, 3.383 euros per square meter in April 2023. The increase since February this year has been quite moderate, only 3.45%, but over the year (since April 2022) the price has increased by 10.5%. The next most expensive after Porto is its northern neighbor Matosinhos, where you can find the port for cruise ships, docks, fish restaurants and shopping centers. The average price per square meter in April was 3.085 euros, which is only 1.25% higher than in February. Matosinhos has become the county champion in terms of annual price growth per square meter of real estate: the average price per square meter has increased by as much as 26.9%!
Then comes Porto's southern neighbor, the municipality of Vila Nova de Gaia, the center of the port wine industry and Portugal's second most populous city. Here, in April 2023, a square meter costs an average of 2.114 euros. The most remarkable is that the increase since February was as much as 35.08%. This stands out from the overall picture of the municipalities. At the same time, the annual growth (since April 2022) was quite moderate, only 8.6%. Time will tell if the price growth trend that we saw in the last quarter will continue.
Prices per square meter in the other suburbs of Porto over the past three months have changed much less than in Vila Nova de Gaia. Somewhere they have decreased slightly, but mostly, on the contrary, they have increased. If we discuss year-on-year changes, prices were increasing everywhere, but at a fairly calm pace. As I mentioned earlier, the champion in terms of annual growth was Matosinhos with 26.9%. It was followed closely by Penafiel with 26%. All other regions showed annual growth between 3.7% and 15.5%.
How trustworthy are the statistics from Idealista.pt?
The information available on Idealista.pt is based on housing listings published only on that site. Clearly, this gives us an idea of the "seller's price. For a more accurate picture, it would be good to know the final prices at which transactions were made. The only source of such data is the quarterly report of the National Statistics Institute of Portugal. The latest information currently available is for the fourth quarter (October - December) 2022. About the Porto real estate market in the spring of 2023 this report will not tell us, but we can compare the data for the fourth quarter from both sources. This will give us an idea of how close to reality the numbers we see now on Idealista.pt. Let's take a few municipalities in Porto County as an example.
The table shows the real average cost per square meter in sales transactions according to the National Institute of Statistics (column 1), the average cost per square meter from Idealista.pt listings (column 2), and the difference between the two in percentage terms (column 3).
What can be gleaned from this comparison? Firstly, in the vast majority of municipalities in the fourth quarter of 2022, the average price per square meter was lower than what sellers asked for on Idealista.pt. The most significant difference was in Matosinhos (31.65%), Porto (21.2%), Vila Nova de Gaia (19.02%) - that is, in the most expensive municipalities according to Idealista.pt.
Second, in two municipalities, the average price according to Idealista.pt was, on the contrary, lower than when the deal was made. However, this difference was less than a percent in both cases.
How can we explain such significant differences in the average cost per square meter from the sales advertisements and from the data on actual sales? It is important to keep in mind that the way the Institute of Statistics and Idealista.pt calculate average values differs, so we would never see a complete match. Furthermore, it is possible that the owners could ask for an inflated price when posting on the site, hoping that the buyer will haggle and the price will have to go down when the deal is finalized. There are several other possible explanations, but most likely these two are the main ones.
So, why do we believe the data on the price per square meter calculated by Idelista.pt? Simply because this site is the source of the most up-to-date information. We rely on Idealista.pt for a real-time assessment, knowing that our estimate will not be one hundred percent accurate. That said, we will keep in mind that real deals may well be closing at lower prices than can be seen on Idealista.pt. So, buyers, have fun haggling!
Long-term rentals in Porto County municipalities
The table above shows the average price per square meter of properties whose listings have been published on Idealista.pt (columns 1-3). Column 4 shows how the price has changed over these three months: by how much it has risen or fallen. Column 5 shows the change over the calendar year. The municipalities in the table are arranged in descending order of average price per square meter in April 2023.
Over the past 3 months, housing has not been offered in all municipalities in the county, so we see a shorter list of cities in this table. As in the case of sales, the leader in terms of cost per square meter of rent is the city of Porto. In April, it was possible to rent a house at an average price of 15 euros per meter, which is only slightly higher than in February (1.35%). But the annual price increase is impressive, 37.2%.
In the next municipality after Porto, Matosinhos, the price per meter in April was 12.1 euros, which is a small decrease compared to February (-0.82%). However, there is a year-on-year increase of 18.4%. In most of the other municipalities under consideration, the price of a rental meter has increased slightly since February, but the annual growth is much better: from 13.9 to 38.5%. The champion in terms of annual growth was the municipality of Gondomar, Porto's eastern neighbor, which is far from the most expensive in terms of either rent or purchase.
Rent a property by the day in the municipalities of Porto County
As a region rich in attractions, Porto is certainly a must-see for most tourists visiting Portugal. Let's try to find out to what extent the popularity with tourists is reflected in the cost of housing and what is the investment potential of real estate in this region.
For example, the All The Rooms site helps to pre-estimate the income from housing rented through the AirBnB service. The calculation uses data on the average daily rent of similar housing rented in the same area of the city, as well as its occupancy rate. The service is interesting, but the most detailed information useful to the investor is only available in the paid version.
In the free version you can find out, for example, how many tourist rentals are already offered in the selected area. Also, All The Rooms reports the average cost per day of rent in different municipalities of Porto County for 3 months. The service gives prices in dollars, and in the table below they are converted into euros at the current exchange rate. Municipalities in this table are sorted by name.
The table shows the number of properties published on the AirBnB travel rental service between February 7 and May 7, 2023, and the average price per night of renting that accommodation.
It is important to take into account that this data is not tied to the cost per square meter of housing, so the table shows the average values for all objects commissioned in this period (this may be both villas and studios). Nevertheless, even this data helps to begin to navigate the situation.
The absolute leader in the number of rentals is the city of Porto, however, in terms of expensive tourist rentals, it gives way to Vila Nova de Gaia (which also has many tourist rentals), as well as a large number of other municipalities.
Property for sale in different areas of Porto
The table above shows the average price per square meter of real estate whose listings have been published on Idealista.pt (columns 1-3). Column 4 shows how the price has changed over these three months: by how much it has risen or fallen. Column 5 shows the change over the calendar year. The districts in the table are arranged in descending order of the average price per square meter in April 2023.
The most expensive area of Porto today is "Aldoar - Foz do Douro - Nevogilde". It is an association of relatively small neighborhoods located in the western part of the city, on the right bank of the Douro River, and has access to the ocean. Beaches, a city park, an international school, large medical institutions and several universities make this area very prestigious. The price per square meter on sale in April 2023 was 4.157 euros, the result of a slight decrease since February (-0,29%). And since April 2022, this value has increased by 7.2%.
This area is followed by four with prices ranging from 3,000 to 4,000 euros. The very first one, "Cedofeita - Santo Ildefonso - Sé - Miragaia - São Nicolau - Vitória" is the very center of Porto, full of tourist attractions such as: Porto Cathedral, São Bento railway station, Lello bookstore, Music House, Torre dos Clérigos tower and others. The average cost per square meter of real estate in April was 3.847 euros. Compared to February, this is a slight decrease (-0.49%), while for the year the area showed an increase of 6.4%.
Other areas of Porto with prices above 3,000 euros per square meter are the areas adjacent to the historic center from the west, east, and northeast: Lordelo do Ouro e Massarelos, Bonfim and Paranhos. In all of them prices have increased at different rates in the last 3 months and over the past year. The Paranhos area has become the champion of growth in the entire city of Porto. Since April 2022, the average cost per square meter there has grown by 16.9%.
Complete our list of two areas with average prices ranging from 2.700 to 2.800 euros per square meter: Ramalde and Campanhã. Interestingly, at almost the same cost per square meter, the dynamics of change in them is extremely diverse. Over the past 3 months, the price per square meter in Ramalde kept almost at the same level, but in the context of the year showed an increase of 11.9%. In the Campanhã area, the price per square meter for the last 3 months has increased by 5.55% and the annual growth is even 15%, which makes this area the second highest annual growth rate in the city of Porto.
Let's look at the rents in these areas of the city.
Long-term rentals in Porto districts
The most expensive area in terms of rent is the historic center of Porto, the area "Cedofeita - Santo Ildefonso - Sé - Miragaia - São Nicolau - Vitória". Rent per square meter there costs 17.8 euros per month. Over the past 3 months, the price of rent has increased by only 1.71%, but the annual increase was almost 40%.
In 3 districts, it is possible to rent housing from 14 to 15 euros per square meter. It is noteworthy that in this group is both the leader in annual growth, the neighborhood Bonfim, where the cost per square meter for 12 months increased by 41%, and the outsider, the area "Aldoar - Foz do Douro - Nevogilde". Where the annual price per square meter increased by "only" 20%. The third district in the same group, "Lordelo do Ouro e Massarelos", which has seen the highest increase in the price per square meter over the past three months, 20.17%.
As you can see from the table, the annual increase in rental prices is quite clear and stable when each neighborhood is considered separately. So if you are choosing between buying and renting an apartment in the city of Porto or considering buying a property to rent on a long term basis, take into account the rate of growth.
Daily property rent in the city of Porto
If we talk about investing in real estate in Porto, there is also the option of short-term tourist rentals. To assess its potential, we again turn to the service All The Rooms. The table below shows the number of properties published on AirBnB from February 7 to May 7, 2023, and the average price per night of renting this accommodation.
This service provides information without reference to the cost per square meter of housing, so the table shows the average values for all objects commissioned in this period (which can be both penthouses and rooms).
According to these data, the most expensive for a tourist visiting Porto in the spring will cost a night in São Nicolau (109.74 euros), "Aldoar - Foz do Douro - Nevogilde" (107.88 euros) and Massarelos (101.37 euros). And the greatest number of proposals for daily rent in the area of Santo Ildefonso (3,131 tourist accommodation). All mentioned areas, except "Aldoar - Foz do Douro - Nevogilde", are located in the very center, which, naturally, attracts the main flow of tourists.
Interestingly, I could not find information about some areas of Porto on All The Rooms. Either the service doesn't show this information in its free version, or it doesn't know these names.
The most expensive and cheapest real estate available for purchase in May 2023
Today on Idealista.pt you can find 9.273 listings for houses for sale in the Porto area. The cheapest of them will be the ruins, which someone will buy just for the land underneath. Interestingly, even among the most expensive options are palaces and estates that need a thorough renovation. In this review, I will only show homes that are ready to move in and do not require renovations or major repairs.
The most expensive buildings among completed houses in Porto County today
6.500.000 euros
Estate in the municipality of Lousada (near the famous wine producer Quinta da Aveleda). Land of 12.5 hectares with vineyards, orchard, forest and even a poultry house. House with 5 bedrooms and central heating.
5.000.000 euros
Event estate on a plot of more than 1 hectare. There is a separate house for living or renting, a pavilion for receptions, an outdoor space, a heated swimming pool, etc. The Portuguese rent such places for events and especially for weddings (whose celebration here is rarely limited to a formal ceremony and dinner in a restaurant). The municipality of Maia.
3.900.000 euros
Estate with vineyards of more than 70 hectares. The main house is in excellent condition, but completely without luxury. The area of the house is over 1000 square meters. 10 bedrooms, 1 bathroom. Central heating. Wine cellar, outdoor swimming pool, garden. In addition to the vineyards there are fruit trees. Some of the buildings in the area are demolished. Municipality of Amarante.
3.750.000 euros
House with a plot of 2.500 square meters. 6 bedrooms, 6 bathrooms. The area of the house is 805 meters. Swimming pool, tennis court, garden, orchards, vineyard. The garage for 6 cars. For some reason there are no pictures of the inside of the house, but it is written that all is in excellent condition. The municipality of Vila Nova de Gaia.
3.500.000 euros
Two-story house in a private condominium. Area 372 square meters. 4 bedrooms, 4 bathrooms. Plot 761 meters. Swimming pool, garden, garage. Panoramic views of the Douro River. Municipality of Vila Nova de Gaia.
Minimal prices for finished homes in which you can live without immediately starting a major renovation:
79.000 euros
Microscopic single-story house of 46 square meters with fresh renovation. One bathroom. It seems that the bedroom is combined with the living room and kitchen corner. It even seems to have a small plot that is positioned as a terrace, but it will need to be cleaned up. Porto city, Campanhã area.
85.500 euros
House of 76 square meters on a plot of 123 meters.2 bedrooms, one bathroom. The house was built in 2013. Energy efficiency class B. Baião municipality.
When it comes to apartments, there are 26,393 offered in the Porto region. We will set the search criteria and only look at those that have 2 bedrooms, are ready to move in and are not encumbered by rental contracts.
The most expensive apartments in the Porto region:
2.000.000 euros
Apartment of 189 square meters on the second floor. 2 bedrooms, 4 bathrooms. There are a few more rooms that can be turned into bedrooms if necessary. House in a luxury condominium overlooking the river and the ocean. The house has an elevator and a swimming pool. Energy efficiency class B. City of Porto, Lordelo do Ouro e Massarelos.
1.090.000 euros
Apartment of 166 square meters. 2 bedrooms, 4 bathrooms, storeroom. 7th floor. The building has an elevator and a garage. Views to the Douro River and the ocean. Energy efficiency class D. Porto, Aldoar - Foz do Douro - Nevogilde.
750.000 euros
Apartment of 95 square meters. 2 bedrooms, 3 bathrooms, garage. There is air conditioning and central heating. Views over the Douro River and Porto. The building was built in 2021. Energy efficiency class A. Municipality of Vila Nova de Gaia.
When searching for the cheapest apartment options, the first listings shown are those with apartments closed for viewing, apartments with tenants, and apartments from which only a portion is for sale. There are also more options without a license for residential units. I will not show all of these options.
The cheapest apartments in acceptable condition to move in:
86.000 euros
Apartment of 125 square meters in a semi-basement. There is access to sunlight. The house was built in 1999. 2 bedrooms, one bathroom, terrace. Energy efficiency class C. The municipality of Marco de Canavasas.
99.000 euros
Apartment of 83 square meters. It is located on the second floor in a house without an elevator. The house was built in 2006. Energy efficiency class F. The municipality of Gondomar.
If we talk about apartments in Porto, more or less decent options start from:
136.500 euros
Apartment of 69 square meters. 2 bedrooms, 1 bathroom. The house was built in 1988. Energy efficiency class C. District Campanhã.
140.000 euros
Apartment of 96 square meters. 2 bedrooms, 1 bathroom. The house was built in 1982. Energy efficiency class B. Near the university. Paranhos neighborhood.
Which conclusions can be made about the state of the Porto real estate market this spring
Porto is a vast region with many points of attraction. It is not only interesting for short-term tourist trips, but also offers an excellent infrastructure for living and business. It is quite expected that those who are lucky enough to own real estate in the region, and especially in the city of Porto, will try to sell it as expensive as possible. However, data from the National Institute of Statistics indicates that real sales are still very likely to be at lower prices than those indicated by sellers in their listings on the Idealista website.
If we compare the specific sales offers on Idealista.pt with what we have seen this winter, with the exception of the very expensive homes segment, almost all of the properties available in February no longer show up in searches. It seems that the cheapest properties are buying up quickly, especially if they are in decent condition. At the same time, other cheap options are showing up, but the bottom line of the notion of cheap is rising...
If you are looking to buy real estate in and around Porto, through the portal WithPortugal.com you can contact a professional real estate agent in Portugal who will be happy to help you find the house or apartment of your dreams or a profitable investment in Portuguese real estate.
I wish you a successful purchase!
Translated from Ukrainian by Rodion Shkurko
