Buying a house costs less than renting in every municipalities in the country

Buying a home requires "less financial effort" than renting "in all municipalities in the country," according to a study on housing affordability in Portugal.

 

The study concluded that buying a home “implies a monthly rate of between 14% and 61% lower than the monthly rental price in the same area, including in highly valued markets such as Lisbon and Porto”, where the difference is respectively - 14% and -30%, and in Faro it is -26%.

 

It is also concluded that, based on the monthly effort rate of 33% of households to purchase housing, as the maximum indicated, it was found that “the five municipalities with the highest housing effort in the country are Lisbon - where this indicator reaches 58% - followed by Lagos, Loulé, Tavira and Albufeira ”.

 

The trend is explained by the evident imbalance between housing supply and demand in the country´s capital.

 

However, in the Algarve, “the combination of real estate price pressure in tourist centers with the lowest family income in the country, precisely in these four municipalities, generates effort rates above 50%”.

 

On the other hand, the five municipalities in which housing acquisition requires the least effort from families are Guarda, Castelo Branco, Bragança, Santarém and Portalegre, “which in total own only 2.1% of the continent´s residences”, the study indicates. .

 

With regard to leasing, the effort rate is even higher, with the five most affected municipalities in the country being Lisbon and Albufeira, both with “a significant 68%, closely followed by Loulé, Cascais and Amadora, where they rent a square. of 90 The domestic meter already requires 57% of families´ monthly income. "

 

According to the study, in 13 of the 18 district capitals the purchase of a 90 square meter house is below 90,000 euros, “ranging from 53,855 euros from Guarda to 86,485 euros from Setúbal. Évora, Coimbra, Faro, Porto and Lisbon are the exceptions, but while in the first three the purchase of this house varies between 100,000 euros and 130,000 euros in Porto has a value of 164,714 euros and in Lisbon of 305,429 euros, ”said the consultant. .

 

In the metropolitan areas, there are different situations and, in the Algarve, only Portimão is below the price of the district capital (125,444 euros), while Tavira and Lagos are around 165,000 euros and Loulé is at 172,566 euros.

 

In the Lisbon Metropolitan Region, Cascais is already over 225,000 euros and Oeiras near 195,000 euros.

 

Source: Agência Lusa