Using official Government data and our own property prices for 2018 and 2019, we present the 2019 City Housing Index for Portugal!
The Most Affordable Property Hotspots
The 2019 City Housing Index - Ranked
So, where are the most salary-friendly cities? Where will your hard-earned earnings get you the best home?
First up is São Jorge in the Azores. Situated on an island in the central area of this notoriously beautiful area, a house will cost you €49,333 in 2019, and with the salary of the area averaging at around €13,293, a house in the Azores is even more affordable than you may think.
Lajes do Pico is also in the Azores and comes in a close second for the most affordable property hotspots in Portugal. Located in the southern Azores, the area is known for whale watching - who wouldn’t want to live alongside these incredible marine creatures? With house prices averaging around €70,500 and average salary coming to €15,007, the salary to property ratio works out to x 4.70 - again, not bad for an area renowned for its incredible beauty!
Stepping away from the Azores, Portalegre comes in third place. This area is well known for it’s natural charm and wide open plains, mountainous views and more - perfect for those looking to move from the hustle and bustle of city life. A home in this area costs around €85,269 on average and with an average salary of €18,022, the salary to property ratio is only slightly higher than that of Lajes do Pico at x 4.73
The Best Property Investment Cities
The 2019 City Housing Investment Index - Ranked
For many homebuyers, the prospect of being able to sell their home for a profit in the future is something that can influence where they choose to live. If you’re someone who is concerned with how good of an investment property in your favourite location would be, take a look at our table below, which outlines the cities where property value has increased over the last 12 months alone… and which areas have decreased in value.
Calheta (Madeira) is the best place for property investors to focus their attention, with house prices increasing a massive 1231.57% in just 12 months - that equated to an increase of €19,172.
Évora in mainland Portugal comes in a close second, with house prices soaring from 2018 to 2019 by 1204.42%. The average property in 2018 cost €130,540, which then rose by €15,723 in just a year to €146,263.
Vila do Porto in the Azores is also worth a look if investment is an important aspect of buying a home, as house prices rose by a huge 1096.33% in 2019. Not only will you benefit from living in an area of incredible beauty, but there’s a good chance your property will only increase in value as the years go on.
Using data collected my Imovirtual on house prices across Portugal, we listed each main city in each municipality along with the average house price for 2018 and 2019.
Data from ine.pt was used to list the average yearly salary for each of these cities.
Using the 20% deposit figure for Portugal, we then worked out how much a person would need to save up to put a deposit down in 2019 by multiplying the 2019 house price by 20%
We then worked out the house price as a percentage of the average salary by dividing the average house price in 2019 by the average salary. This percentage was then used to work out the Salary to Property Ratio by dividing the number by 100.
To determine the best investment areas, we calculated the price increase for each area in just 12 months by subtracting the 2018 price from 2019.
We removed Santa Cruz das Flores and Corvo due to lack of salary and property price data.