For the 4^th quarter of 2021

DREM releases information on the median price of dwellings in the Autonomous Region of Madeira

Introductory note

The Regional Directorate of Statistics of Madeira (DREM) releases today a new time series on Housing Price Statistics at a local level, for the Autonomous Region of Madeira, which starts in 2019. This is a result of an amendment in the collaboration protocol between Statistics Portugal (INE) and the Portuguese Tax and Customs Authority (AT), which now includes the submission of new indicators to INE associated with the Property Transfer Tax (IMT), namely, the identification of buyers according to their institutional sector and tax residence. The new indicators now published are therefore not directly comparable with the time series previously made available, since 2016.

It should also be recalled that this information is obtained from the administrative tax data on the IMT and the Municipal Property Tax (IMI), which are provided monthly to INE by AT, on the basis of a cooperation protocol signed between these two entities.

As in previous quarters, this release is divided into two sections, one with the analysis of the results for the 4^th quarter of 2021, considering only the three months of the quarter, and the other with the information from the last twelve months, which allows an analysis of the most recent dynamics of the housing acquisition market. This enables a more detailed analysis of the effects of the Covid-19 pandemic in house prices but conditions the presentation of results for small territorial areas, with information available for the Region only for the Autonomous Region of Madeira and for the municipality of Funchal.

Analysis of the results

House prices in the Autonomous Region of Madeira increased in the last three months

In the 4^th quarter of 2021 (last 3 months), the median price of dwelling sales in the Autonomous Region of Madeira was 1,506 euros per square meter, standing below the Algarve (2,114 euros per square meter /m²) and the Área Metropolitana de Lisboa (1,906 euros per square meter), but above the national value (1,355 euros per square meter).

While in the 3^rd quarter of 2021 the year-on-year rate of change in the median value of dwelling sales per square meter had been +5.2%, in the 4^th quarter of 2021, this growth increased to 20.3%. At the national level, there was also a further acceleration in dwelling price growth, with the year-on-year rate of change rising from 12.2% in the 3^rd quarter of 2021 to 14.1% in the 4^th quarter of 2021. Amongst cities with over 100 thousand inhabitants, Funchal is the only city with both a higher median price (1,967 euros per square meter) and year-on-year growth (+22.6%) when compared with the national average, showing a much higher growth rate than the one registered in the 3^rd quarter of 2021 (+5.8%).

In the 4^th quarter of 2021, the median value of dwellings transacted in the Autonomous Region of Madeira involving purchasers with tax residence abroad was 1,748 euros per square meter, while transactions made by purchasers with tax residence in the National Territory was 1,499 euros per square meter. The median price of dwellings purchased by households was 1,531 euros per square meter and 1,353 euros per square meter for purchasers belonging to other institutional sectors.

Median price of dwellings sales increased in the last 12 months (between January and December 2021)

In the 4^th quarter of 2021 (last 12 months), the median price of dwelling sales in the Autonomous Region of Madeira was 1,436 euros per square meter, representing a quarterly increase of 5.3% and a year-on-year increase of 10.2%. At a national level, the median price was lower, at 1,297 euros per square meter, with positive changes, in the same order, of 3.7% and 9.0%. It should be noted that the value for the Autonomous Region of Madeira was only lower than that of the Algarve (2,000 euros per square meter) and Área Metropolitana de Lisboa (1,813 euros per square meter). In the Autonomous Region of Madeira, the value of new dwellings (1,729 euros per square meter) continued to exceed the value of existing dwellings (1,360 euros per square meter), by 369 euros per square meter.

Analysing the last two years (4^th quarter of 2021 compared to the same quarter of 2019), the median price of dwellings, in the Autonomous Region of Madeira, grew by 18.3% in that period, slightly below the average for the country (+18.6%).

In this period, the median value of dwellings transacted in the Autonomous Region of Madeira acquired by buyers with tax residence abroad was 1,703 euros per square meter, higher than the transactions made by buyers with tax residence in National Territory, which stood at 1,423 euros per square meter. The median price of dwellings purchased by households was 1,450 euros per square meter and by purchasers belonging to other institutional sectors was 1,363 euros per square meter.

In the municipality of Funchal, the median price of dwelling sales, in the 4^th quarter of 2021, stood at 1,750 euros per square meter, which means that this municipality was the only one in the Autonomous Region of Madeira to record a value above the regional average. In the national ranking, Funchal occupied the 21^st place of municipalities with the highest median value. The list continues to be headed by Lisbon (3,531 euros per square meter), with the following positions being occupied by municipalities in the Área Metropolitana de Lisboa, Algarve and Porto. Of all the Portuguese cities with more than 100 thousand inhabitants (Lisbon, Porto, Funchal, Amadora, Coimbra, Vila Nova de Gaia and Braga), Funchal is the seventh highest, after Lisbon, Cascais, Oeiras, Porto, Odivelas and Loures.

In addition to Funchal, the municipalities of Santa Cruz, Câmara de Lobos, Porto Santo, Calheta, Ponta do Sol, Ribeira Brava and Machico, although registering prices below the average for the Autonomous Region of Madeira, stood out, as they presented significant values above one thousand euros (1,346 euros per square meter, 1,174 euros per square meter, 1,154 euros per square meter, 1,064 euros per square meter, 1,060 euros per square meter, 1,032 euros per square meter and 1,025 euros per square meter, respectively). The lowest value was observed in Santana (636 euros per square meter).

In the 4^th quarter of 2021, in the Autonomous Region of Madeira, the median sales price of two-bedroom dwellings was 1,484 euros per square meter, the highest when compared to the other types (studios or one-bedroom dwellings, 1 429 euros per square meter; three-bedroom dwellings, 1 442 euros per square meter; four-bedroom dwellings or higher, 1 195 euros per square meter). In the city of Funchal, all the typologies under analysis presented substantially higher values than in the Region, with the studio and one-bedroom apartments registering the highest value (1 972 euros per square meter).

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