For the 1st quarter of 2023
DREM releases information on the median price of dwellings in the Madeira Autonomous Region
Statistics Portugal (INE) released today information regarding the median price of housing sales in the Autonomous Region of Madeira for the 1st quarter of 2023. This note is divided into two parts: one analysing the results for the quarter, considering only the three months of the quarter, and the other providing information for the last twelve months.
It is important to note that this information is obtained using administrative tax data from the Municipal Property Transfer Tax (IMT) and the Municipal Property Tax (IMI), which are provided monthly by the Tax and Customs Authority (AT) to the INE (Statistics Portugal), based on a collaboration protocol established between these two entities.
The median prices of dwellings in the last three months grew at a rate below the national average in year-on-year terms
In the 1st quarter of 2023, the median price of dwellings in the ARM was 1,697 euros per square meter, positioning itself below the Algarve (2,609 euros per square meter) and Área Metropolitana de Lisboa (2,288 euros per square meter), but above the national value (1,565 euros per square meter).
While the year-on-year change rate of the median value of dwellings sales per square meter was +18.9% in the 4th quarter of 2022, this growth slowed down to 7.0% in the 1st quarter of 2023. Nationally, the behaviour was similar, with a slowdown in housing price growth, as the year-on-year change rate decreased from 10.7% in the 4th quarter of 2022 to 7.6% in the 1st quarter of 2023. Compared to the previous quarter, the ARM recorded a decrease of 5.2% while the country experienced an increase of 4.3%.
Among municipalities with more than 100,000 inhabitants, Funchal had a higher median price (2,233 euros per square meter) compared to the national average (1,565 euros per square meter) and also showed higher year-on-year growth (+13.3%) compared to the national average (+7.6%). However, there was a negative change of -8.1% compared to the previous quarter.
In the 1st quarter of 2023, the median value of dwellings transacted in the ARM involving buyers with tax residence abroad was 2,283 euros per square meter, while for transactions made by buyers with tax residence in the national territory, this value was 1,619 euros per square meter. The median price of dwellings acquired by households was 1,689 euros per square meter, and for buyers belonging to other institutional sectors, it was 1,712 euros per square meter.
The median price of dwellings in the ARM for the last 12 months was 1,582 euros per square meter
In the 1st quarter of 2023, this represents a quarterly increase of 0.7% and a year-on-year increase of 6.8%. At a national level, the median price was lower, at 1,509 euros per square meter, with positive changes of 1.7% and 12.1%, respectively. It should be noted that the value in the ARM was only below the Algarve (2,429 euros per square meter), Área Metropolitana de Lisboa (2,166 euros per square meter), and Área Metropolitana do Porto (1,646 euros per square meter). Furthermore, in the ARM, the median price of new dwellings (1,664 euros per square meter) continued to surpass the value of existing dwellings (1,576 euros per square meter) by 88 euros per square meter.
During this period, the median value of dwellings transacted in the ARM by buyers with tax residence abroad was 2,207 euros per square meter, higher than the transactions made by buyers with tax residence in the national territory, which stood at 1,539 euros per square meter. The median price of dwellings acquired by households was 1,628 euros per square meter, while for buyers belonging to other institutional sectors, it was 1,414 euros per square meter.
In the municipality of Funchal, the median price of housing in the 1st quarter of 2023 was 2,172 euros per square meter, making it the only municipality in the ARM to exceed the regional average (by 590 euros per square meter). In the national ranking, Funchal ranked 17th among municipalities with the highest median value. The top positions were occupied by Lisbon (3,965 euros per square meter), municipalities in the Áreas Metropolitanas de Lisboa and Porto, and the Algarve region. It is worth noting that among Portuguese cities with more than 100,000 inhabitants, Funchal ranked ninth, after Lisbon, Cascais, Oeiras, Porto, Odivelas, Loures, Matosinhos, and Almada.
The municipalities of Câmara de Lobos, Porto Santo, Santa Cruz, Calheta, Ponta do Sol, Machico, Ribeira Brava, and São Vicente, although registering prices below the regional average, stood out with considerable values above one thousand euros per square meter (1,483 euros per square meter, 1,441 euros per square meter, 1,437 euros per square meter, 1,276 euros per square meter, 1,242 euros per square meter, 1,236 euros per square meter, 1,084 euros per square meter, and 1,032 euros per square meter, respectively). The lowest value was observed in Porto Moniz (761 euros per square meter).
Within the municipality of Funchal, the parishes of Sé and São Martinho had prices above 2,500 euros per square meter (2,778 euros per square meter and 2,619 euros per square meter, respectively), being the only ones positioned above the municipality's average (2,172 euros per square meter). They were followed by Santa Luzia, with 1,927 euros per square meter, Imaculado Coração de Maria, with 1,887 euros per square meter, and Santo António, with 1,884 euros per square meter.
In the parish of Caniço, the median price of dwellings in the 1st quarter of 2023 reached 1,703 euros per square meter, surpassing the value observed for the entire municipality of Santa Cruz (1,437 euros per square meter) by 266 euros per square meter. Notably, in this parish, this indicator grew both year-on-year (+18.7%) and quarterly (+4.8%).
In the 1st quarter of 2023, in the ARM, the median price of sales for T0 or T1 accommodations was 1,768 euros per square meter, the highest compared to the other typologies (T3, 1,589 euros per square meter; T2, 1,582 euros per square meter; T4 or higher, 1,255 euros per square meter). In the city of Funchal, all analysed typologies showed substantially higher values than the region, with T0 or T1 accommodations recording the highest value (2,522 euros per square meter).
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