New house sales has significantly declined throughout the country in the first quarter of this year, with prices also experiencing a decline.
New house sales in the Lisbon Metropolitan Area (AML) plummeted by 56% in the first three months of this year compared to the same period in 2022, according to the consultancy firm Imovendo, as reported on Monday. Prices per square meter also experienced a decline.
Between January and March, 741 properties were sold in the AML, compared to 1,675 transactions in the first three months of the previous year. The average price per square meter was 3,964 euros, which is 12% lower than the 4,494 euros/sqm recorded a year earlier.
The significant drop in the Greater Lisbon area has even led to the region being surpassed by the Porto Metropolitan Area (AMP) in terms of the number of new houses sold. In the Greater Porto area, sales reached a total of 796 units, a decrease of 35% compared to the 1,234 properties sold in the first three months of 2022. The average price in the AMP dropped by 18% to 2,873 euros per square meter.
The Northern region stands out from the national trend by increasing the number of properties sold by 6%, reaching 645 units, despite a 12% increase in prices, reaching 1,719 euros/sqm.
The Algarve region presents the second largest decline in volume (-53%), with 199 units, while the Alentejo region experienced a decrease of 40%, and the Central region a decrease of 13%.
“This drastic decline can be explained by the fact that new properties have significantly inflated prices per square meter. However, the decline in sales also accompanied a decrease in property values, which indicates that the real estate market is finally showing signs of contraction,” stated Miguel Mascarenhas, co-founder of Imovendo, as quoted in the statement.
“The first quarter of 2023 was undoubtedly a period of significant contraction in the real estate market. This scenario had been anticipated for about two years, but it is only now beginning to show true signs of slowdown,” he added.
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