Price drop in premium areas
The property market in Lisbon and Porto shows signs of slowing, particularly in the most valued areas. Some of the most sought-after parishes, known for their dynamism and attractiveness, are registering consecutive declines in house prices. In Lisbon, several parishes show reductions in median sale values, while in Porto the phenomenon is repeated, albeit less pronounced. The main explanation for this trend is the massive entry of new developments onto the market, which has increased supply and created downward pressure on prices.
In neighbourhoods such as Marvila or Arroios, the price per square metre has been falling quarter after quarter, countering the general upward trend observed until recently. This change reflects a new balance between supply and demand, with buyers becoming more cautious and sellers adjusting expectations.
Lisbon adjusts prices with new housing arrivals
In Lisbon, parishes such as Marvila stand out for a significant fall in new house prices. Although still above the city average, these areas are experiencing continuous declines, particularly in newly built properties. The same occurs in Arroios, where greater competition among new developments has led to reductions in final transaction values.
In Santo António, one of the capital's most expensive areas, corrections are most visible in the second-hand property market. The presence of older buildings in need of renovation has led to more intense negotiations and, consequently, a slowdown in price growth. These signs indicate that the Lisbon market is going through a natural adjustment phase after several years of accelerated appreciation.
Porto follows a correction trend in luxury areas
In Porto, the fall in house prices is more moderate but is already noticeable in the most prestigious parishes, such as Aldoar, Foz do Douro and Nevogilde. In these neighbourhoods, the median price per square metre exceeds €3,800, but the correction has been consistent over recent quarters. The gap between asking prices and actual sale prices has been widening, showing that the market is more rational and less speculative.
The arrival of new properties at very high prices also contributes to a reassessment of expectations. Many buyers prefer to wait for more balanced opportunities, while sellers gradually adjust prices to match real demand conditions.
A transitioning market and greater balance
The cooling of house prices in Lisbon and Porto's most valued areas does not represent a crisis but a transition phase towards a more stable market. After years of strong growth, the supply of new housing is beginning to balance with demand, supporting a healthy normalisation.
At the national level, house prices continue to rise, but at a more moderate pace. Localised falls in premium areas reveal an adjustment movement, with the market adapting to a new economic and demographic reality. For buyers and investors, this scenario represents an opportunity to enter a sector that, although slowing, remains solid and with potential for sustained appreciation.
Source:
SUPERCASA