Data from Imovirtual, compiled following an analysis of average sale prices over the last three months compared with the same period last year, confirms that “across various property types and regions of the country, a detached house can be significantly more affordable than an equivalent flat.”

The data presented reveal that “the greatest difference between flats and detached houses lies in location.” In other words, detached houses remain a more expensive investment in the main urban and tourist markets. The situation is reversed in the interior of the country, where detached houses are cheaper than flats.

Premium markets

In major metropolitan areas and premium zones, the difference remains quite significant.

In the case of the island of Madeira, “swapping a flat for a detached house represents an average increase of €300,000, followed by the Algarve, at €285,000, Setúbal, at €260,000, and Lisbon, where the difference stands at €259,750.” In the case of cities further north, such as Porto and Braga, the differences are €145,100 and €100,000, respectively.

The opposite trend

For example, in Coimbra, a detached house costs an average of €165,000 less than the average price of a flat. In the case of Castelo Branco, “the difference is €150,000 less, followed by Viseu, at €122,500 less, Guarda, at €80,000 less, and Bragança, where a detached house has an average price that is €47,500 lower.”

Different property types

The difference is also evident across property types and should be analysed based on the property’s location.

Imovirtual reports that “for one-bedroom properties, detached houses have an average price of €97,000, €143,000 less than flats”. In the case of two-bedroom properties, “this difference rises to €190,000, whilst for three-bedroom properties, detached houses have an average price that is €185,000 lower.

This phenomenon can be explained “by the fact that a large proportion of houses in these categories are located in inland markets and outlying areas, where prices are more affordable, whilst smaller flats are heavily concentrated in metropolitan areas and newer developments. From four-bedroom properties onwards, this difference virtually disappears, standing at just 35,000 euros, reflecting a greater balance between the two segments.”

Appreciation of detached houses

Although the differences may seem obvious, “detached houses continue to appreciate more rapidly than flats.”

Whilst the average price of flats rose by 2.3 per cent compared with the same period last year, the value of detached houses increased by 7.1 per cent. In terms of property types, the greatest growth was seen in three-bedroom detached houses, with an annual increase of 23.9 per cent, demonstrating that families are increasingly seeking properties with more space.

Sylvia Bozzo, Marketing Manager at Imovirtual, quoted in a press release sent to The Portugal News, states that “there is a widespread perception that swapping a flat for a detached house always involves a much higher investment, but the data show that this reality depends heavily on location and property type. In major urban centres and premium markets, this difference remains very significant, but in several inland areas we find precisely the opposite scenario. This shows that the Portuguese property market is now much more diverse than is often imagined and that there are alternatives which are not always considered by those looking to move house.”