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Housing Prices Up by 9.9% in 3Q2021

December 23, 2021 – Ana Custódio

Eighteen thousand two hundred fifty homes were sold in the Lisbon Metropolitan Area and 15,994 in the North region.

According to the Housing Price Index (IPHab), released today by the National Statistics Institute, housing prices increased by 9.9% y-o-y during the third quarter of 2021, 3.3 percentage points more than in the previous quarter.

The price increase for existing homes was more significant (9.9%) than for new dwellings (9.5%). The IPHab increased in regards to the previous quarter of 3.6% (2.2% in the 2nd quarter of 2021). Existing housing rose by 3.9%, 1.4 p.p., above the increase in new housing (2.5%).

During the period in question, 56,464 homes were sold, up by 25.1% compared to the same period in 2020. Between July and September 2021, similar rates of change were recorded over the different months, 26.8%, 24.5% and 23.9%, respectively. The value of the houses transacted amounted to 9.4 billion euros, 38.7% more than in the third quarter of 2020.

The average annual increase in the Housing Price Index stood at 7.6% in the period under review. For the first time in the last five quarters, the rate slowed down. Prices of existing homes rose by 7.6% and 7.5%, respectively, similar to that of new ones.

Translation: Richard D K Turner