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Housing Prices in Portugal Rise by 14.2% in the First Quarter

11 June 2018

The average sales price of homes in Portugal (mainland) increased by 14.2% in March 2018 compared to the same month of 2017, according to the latest data from Confidencial Imobiliário’s Private Property Index (IPR). The indicator is calculated using the actual prices of transactions obtained under the SIR-Sistema de Informação Residencial.

The year-on-year change in the first quarter of 2018 is not only the highest in this century, but it is also the highest since the first quarter of 1992, 26 years ago (when prices rose by 16.1%). This increase means that, for the first time since the financial crisis, housing prices have surpassed the all-time high reached in the third quarter of 2007 by 2.1%. At the end of last year, despite the recovery that has maintained itself since the second half of 2013 and which has intensified since mid-2015, housing prices remained 0.9% below their peak more than ten years ago.

The increase in the first quarter of this year serves to accelerate the pace of the year-on-year appreciation of houses, which reached 10.0% and 12.8%, respectively, in the previous two quarters, confirming the intensifying trend, which was only (very slightly) interrupted once at the end of 2016. This result is also influenced by the quarterly price growth over the past 11 consecutive quarters. In March, the quarterly rate of change reached +3.1%, maintaining the indicator above the level of 3.0%, where it has stayed since the middle of last year.

Original Story: Diário Imobiliário

Translation: Richard Turner