Lisbon house lace recovers from April
The values charged for new leases in Lisbon at the start of 2020, before the pandemic hit, are not yet fully restored, but there is little to go. The trend is for revaluation since April, as demand is resumed after two confinements that made the numbers of new contracts signed with landlords topple.
According to provisional data published yesterday by the National Statistics Institute (INE), half of the more than 2400 lease contracts signed in Lisbon in the third quarter had already reached values of up to 11.44 euros per square meter, equivalent to a rent of 800 euros for a house with 70 square meters.
This value represents a growth of 4% compared to the previous quarter and is already much closer to 12.10 euros per square meter of the median of rents registered at the start of 2020. So, the median represented a lease of 847 euros for the same area of housing.
INE data already show two consecutive quarters in growth. From April to June, the median of new incomes in the capital rose 0.5% facing a minimum values in pandemic at the start of this year. Then, the median of the capital’s new rents dropped to 10.94 euros per square meter (766 euros per 70 square meters).
The information published by INE goes back only to the beginning of 2020 and results from the communication of data from the tax authorities, which are based on declared lease contracts for means of permanent housing.
The price recovery trend in the capital takes place after sharp drop in leases during the first and second major confinements of this pandemic. In the second quarter of 2020, the number of new contracts signed between tenants and landlords dropped by 40%, then by 1149, to more than double later already in the next opening period and fall again at the end of 2020 (-3%) and in the start-up year, with the resumption of restrictions (-16%).
Since then, the numbers have recovered, with increases of 6% and 17% in the second and third quarters of 2021, respectively.
On the outskirts of Lisbon, the same path of revaluation of rents can be observed in the municipalities of Cascais, Oeiras, Sintra, Odivelas and Seixal, centers of large populations where prices have been rising for two quarters, although with variable criteria in the figures. lease. Cascais, Oeiras and Seixal saw the new contracts in the third quarter of this year, and Sintra and Odivelas registered lower growth rates.
In the last quarter, Loures, Amadora, Almada and Setúbal witnessed chain declines in the median value of the rented square meter – of 3%, 0.8%, 3% and 2%, respectively. The declines occur despite increases in the number of new rents contracted in Loures, Amadora and Almada.
Overall, the Lisbon Metropolitan Area registered price increases of around 3%, with an increase in new lease contracts of around 5% in the last quarter. In the months of July to September, this region represents a third of new national leases.
At a national level, rental prices have been growing in a chain since the third quarter of last year, but with a more moderate rise in INE data. The median of new house rents is 5.66 euros per square meter (396 euros for a 70 square meter house), having increased by 0.8% in the last quarter. During this period, the number of new contracts increased by 8.4%, to a total of 22,305.
