9 de July, 2019
A common scene in the purchase of real estate in Portugal is to face two apartments in the same building and with identical number of rooms, but with values per square meter with difference of more than 100%. How can it be that two properties in the same place and number of rooms have such different prices? And more importantly, which one is the best deal? Understand how the price of a square meter works when buying property in Portugal.
The comparison per square meter is a simple to do account that defines the basic cost/benefit ratio. She seems to be very fair and intuitive. Construction costs are defined by size, so more square meters built means more money spent on construction.
The concept of price per square meter is great, but as useful as it is, its simplicity is misleading. The distortion factors of this measure are so many that any conclusion about the price of a house using this criterion is compromised.
The main enemy of this criterion is the incredible variety of ways you can advertise the area of a house. Imagine a three-bedroom ground floor apartment of 150 m² covered internal area, with walls occupying 15 m², garage of 30 m² and a large terrace of 100 m².
You can advertise this apartment with an area of 280 m² or 135 m², depending on the criteria used. If the price is 300 thousand euros, the value per square meter can be 1.071€ or 2.222€, with a difference of more than 100%.
Imagine the confusion in the buyer’s head when faced with hundreds of options where the criteria for disclosing areas is not always the same. It is true that each advertiser uses a different criterion for the disclosure of areas, making the comparison complicated.
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Read also our step by step guide to buy property in Portugal.
To deal with this challenge in the first place it is necessary to understand the criteria for measuring area in Portugal. Be smart because it is different from Brazil, where the private area criterion prevails – which includes garage, warehouse and walls – or useful area – which includes only the internal area, without walls, garages and warehouses.
The most used by professionals in Portugal is the private gross area that corresponds to the internal area of the property, including the area occupied by the walls, as well as by balconies, basements and private attics. It does not include a common area, such as a building’s hall, garage, and warehouses.
The dependent gross area is the exclusive use covered area in the common area that is not integrated with the private gross area, for example, a garage or warehouse. Add private and dependent gross area and we arrive at the equivalent to the private area in Brazil.
The private gross area is always much more expensive than the dependent area. Making a garage space costs less than a room, for example. Between the private gross area, there are also important differences. A terrace is much cheaper than making the indoor covered area.
Know also which are the main mistakes of Brazilians when buying a house in Portugal.
A property with a private gross floor area of 150 m² with a terrace of 50 m² has a value per square meter smaller than the apartment with a private gross floor area of 150 m² and without terrace in the same building.
Another important issue is the proportion between noble areas with expensive finishes, such as kitchen and bathrooms, in relation to the rest of the apartment. Making a complete kitchen with cabinets and appliances is much more expensive than a living room.
A house of 100 m² with noble areas of 20 m² will cost much less per square meter than a studio of 30 m² in which the kitchen and bathroom occupy 15 m². It is no wonder that a 4-bedroom house has a lower price per square meter than a studio located exactly in the same region and with the same type of finishing and conservation.
Do not even try to compare properties that are more than 1 km away. The location is essential to determine price and there is an enormous sensitivity in Portugal. The cities are smaller and the distance of 1 km is enough to fall out of a tourist zone with the price literally plummeting suddenly.
Even within each microlocation it is important to take each street into consideration. A large, tree-lined main street does not have the same price as a narrow, tertiary street. The views will not be the same, as well as the sun exposure and social status.
Brazilians value a lot of real estate glued to the subway, however, the reality is that the real estate in this location is generally simpler and generally of low quality, making it very difficult for Brazilians to find it.
The majority of the Portuguese population has access to a car. Being glued to the subway is not as important as being close to a good access to the main streets of the cities.
It is common for access to become congested at peak times, so the closer you are to the road or road structure, the shorter the journey time and the better the quality of life, making these properties more valuable.
How much does a house cost in Portugal? See examples of prices.
It is now possible to live with dignity in the city of Lisbon itself, as an example in this one bedroom apartment of 54 m² in the excellent region of Avenidas Novas.
In Porto you can buy a 98 m² two-bedroom apartment in the Boa Vista region, which is the equivalent of Avenidas Novas de Lisboa.
If the idea is to buy for investment, in Lisbon for 200.000€ you can buy a small apartment of one room and 30m² in the famous bohemian region of Alfama. The prices are inflated exactly by the huge tourist attraction of these properties.
A property in an equivalent region in Porto would have 44m ² and would still come with a large terrace.
See 12 obstacles to face to buy a house in Portugal.
Cascais is one of the most popular regions among Brazilians for its proximity to Lisbon and excellent quality of life, with access to the sea and transport.
To conquer the dream of living with enough space for a family in the best regions of Cascais, it is necessary to pay at least 230.000€ to acquire a two bedroom apartment of 85m².
Find out how the Portuguese real estate market works in this article.
To live in style in Lisbon the values already change completely. A property with good finishes in a neighborhood of first class, such as Estrela, requires the buyer to pay € 400,000 for an apartment of two rooms of 90 m². The best neighbourhood in Porto, the famous Foz do Douro, has apartments of the same size for 280.000€.
Now that you have an idea of how much a house in Portugal costs, we remind you that to make the purchase or financing of a property you need knowledge of the Portuguese real estate market and the Portuguese legislation, to do everything according to the law.
We suggest doing the whole process accompanied by an experienced and reliable broker. Make a simulation of consultancy without compromises and guarantee your property with security and tranquility.
Article published on the Euro Tips website: https://www.eurodicas.com.br/preco-do-metro-quadrado-na-compra-de-imoveis-em-portugal/
Author: Marcio Fenelon
Real Estate Investment
Author:
Atlantic Bridge
