According to a study by the real estate agency Century 21, between 2019 and 2022, the purchasing power of Portuguese people decreased by about 9% while the average price of buying a home in the country increased by 38%.
The study, published by The Observer, shows that “the net disposable income of households varies, in provincial capitals, between €1,973 in Lisbon and €1,426 in Viana do Castelo, while the average for provincial capitals is €1,545.”
In Lisbon and Porto, effort rates are well above 40%, which is the banks’ standard for credit negotiations. In Lisbon, a home equity loan reaches an effort rate of 67%. In the northern city the value is 50%.
The same study shows that the value of an apartment varies between 375,000 euros in Lisbon and 59,000 euros in Guarda, where it is less expensive to buy a house.
In Porto, real estate is worth about 250,000 euros, and in the Algarve, several cities have prices over 200,000 euros. The national average is 152 thousand euros.
In the study, the average household income, purchase and rent values for a 90 square meter house were compared. This example has been applied in 40 national municipalities, including provincial capitals.
Andrea Hargraves is a contributor to Brytfmonline.com, covering a broad range of topics including news, politics, business, technology, sports, entertainment, and lifestyle. She is committed to delivering clear, accurate, and reader-focused reporting that helps audiences stay informed about current events and emerging developments. Andrea’s work emphasizes useful information, balanced coverage, and stories that matter to everyday readers, making complex topics accessible and relevant to a wide audience.