For the 3rd quarter of 2023
DREM releases information on the median price of dwellings in the Autonomous Region of Madeira
Statistics Portugal (INE) released today the information for the median price of dwellings, for the 3rd quarter of 2023. This report is divided into two parts, one analysing the results for the quarter under consideration, based solely on the three months of that quarter, and the other providing information for the last twelve months.
It is pertinent to recall that this information is derived from fiscal administrative data concerning the Municipal Property Transfer Tax (IMT) and the Municipal Property Tax (IMI), which are provided monthly by the Tax and Customs Authority (AT) to Statistics Portugal (INE) under a collaboration protocol established between these two entities.
Median price of dwellings in the last three months surpasses the national average growth rate year on year
Between the 1st quarter of 2020 and the 3rd quarter of 2023, both the Autonomous Region of Madeira (ARM) and the national level experienced positive changes in sale prices per square meter compared to the same period in the previous year. Since the 2nd quarter of 2023, there has been an acceleration in price growth in the region compared to the national context: from +24.9% to +43.0% in the ARM, from the 2nd to the 3rd quarter of 2023; from +9.0% to +10.0% in Portugal, considering the same reference periods.
In the 3rd quarter of 2023, the median price of dwellings in the ARM was 2,107 euros per square meter, which marks, for the first time since the data series began, a value exceeding 2,000 euros per square meter. The values for the 1st and 3rd quartiles were 1,176 euros per square meter and 2,882 euros per square meter, respectively. Among the NUTS 2 regions, the ARM ranked just below Grande Lisboa (2,691 euros per square meter) and Algarve (2,654 euros per square meter), but above the national average (1,641 euros per square meter).
During the quarter under review, there was a year-on-year growth in the median prices of dwellings per square meter (+43.0%) in the region, which was more pronounced than the increases observed for the 1st and 3rd quartiles (+12.3% and +28.1%, respectively), indicating a more intense growth in prices within the central part of the distribution.
The analysis of the results suggests that the significant increase in the median price of dwellings in the ARM was mainly due to the strong growth in prices of new dwellings (+78.3% compared to the same quarter last year), accompanied by an increase in the number of transactions in this segment of dwellings (+23.0%). It should be noted that in the 3rd quarter of 2023, transactions of new dwellings accounted for 36.2% of the total transactions in the region, compared to 21.8% in the 3rd quarter of 2022.
When considering municipalities with over 100 thousand inhabitants, Funchal recorded a median price (2,667 euros per square meter) higher than the national average (1,641 euros per square meter), also exhibiting a year-on-year growth (+20.2%) superior to the national rate (+10.0%). Compared to the previous quarter, the change was also positive, at +4.2% (+0.7% nationally).
In the 3rd quarter of 2023, the median value of dwellings transactions in the ARM involving buyers with tax residence abroad was 2,669 euros per square meter, while for transactions involving buyers with tax residence in the national territory, this value was 2,060 euros per square meter. The median price of dwellings purchased by households was 2,154 euros per square meter, and for buyers belonging to other institutional sectors, it was 1,589 euros per square meter.
Median price of dwellings in the Autonomous Region of Madeira was 1,875 euros per square meter over the last 12 months
In the 3rd quarter of 2023 (last 12 months), the median price of dwellings in the ARM was 1,875 euros per square meter, representing a quarterly increase of 11.0% and a year-on-year increase of 22.8%. At the national level, the median price was lower, at 1,579 euros per square meter, with positive changes of +2.5% and +9.2%, respectively. It is noteworthy that the ARM value was only below Grande Lisboa (2,691 euros per square meter) and Algarve (2,564 euros per square meter). Furthermore, in the ARM, the value of new dwellings (2,231 euros per square meter) continued to exceed the value of existing accommodations (1,753 euros per square meter) by 478 euros per square meter.
During this period, the median value of dwellings transactions in the ARM acquired by buyers with tax residence abroad was 2,422 euros per square meter, higher than transactions made by buyers with tax residence in the national territory, which stood at 1,804 euros per square meter. The median price of dwellings acquired by households was 1,877 euros per square meter, and for buyers belonging to other institutional sectors, it was 1,733 euros per square meter.
In the municipality of Funchal, the median housing price in the 3rd quarter of 2023 was 2,498 euros per square meter, making it the only municipality in the ARM to record a value above the regional average (623 euros per square meter more). In the national ranking, Funchal ranked 13th among municipalities with the highest median values. Lisboa topped the list (4,151 euros per square meter), followed by municipalities in Grande Lisboa, Algarve, and Porto.
In addition to Funchal, the municipalities of Santa Cruz, Porto Santo, Câmara de Lobos, Ponta do Sol, Calheta, Machico, and Ribeira Brava, while recording prices below the ARM average, stood out due to their considerable values, all above one thousand euros (1,720 euros per square meter, 1,556 euros per square meter, 1,497 euros per square meter, 1,415 euros per square meter, 1,354 euros per square meter, 1,236 euros per square meter, and 1,155 euros per square meter, respectively). The lowest value was observed in Porto Moniz (850 euros per square meter).
In the parishes of Funchal municipality, Sé and São Martinho stood out in the 3rd quarter of 2023, as they presented values above 2,800 euros per square meter (3,158 euros per square meter and 2,857 euros per square meter, respectively), being the only ones, along with São Pedro (2,559 euros per square meter), to surpass the municipality's average (2,498 euros per square meter). They were followed by Santa Luzia, with 2,194 euros per square meter, Santa Maria Maior, with 2,030 euros per square meter, and Santo António, with 2,022 euros per square meter.
In the Caniço parish, the median price of dwellings in the 3rd quarter of 2023 reached 1,846 euros per square meter, a value exceeding that observed for the entire municipality of Santa Cruz (1,720 euros per square meter)
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