Portugal’s Housing Prices up by 8%

Reports shown by Portugal’s statistics institute INE (Instituto Nacional de Estatísca) reveal that housing prices in Portugal have seen the highest increase ever recorded, stating the House Price Index (HPI) increased 8% in the second quarter of  2017 alone, double the European average. According to the INE, a total of 36,886 dwellings were transacted between April and June 2017, 16.1% more than in the same period of the previous year. The prices of new dwellings showed a year on year difference of 5.4%, 1.2 percentage points (p.p) above what was recorded in the previous quarter. Making this the second consecutive period in which the transaction prices for new dwellings increased.

 

This increase is considered to be, in part, due to the decrease in unemployment rates across Portugal that fell to 8.5%. Programs such as the Golden Visa, Non-Habitual Residency and Sephardic Jewish Ancestry Program, promulgated by the government to attract foreign direct investment, have also contributed towards stabilising the economy. With the government's effort to stabilise the economy, the quality of life and portugal’s peaceful history.

 

RICS chief economist, Simon Rubinsohn, believes the outlook is positive. ‘Employment growth has accelerated across the Portuguese economy in recent months, with the latest figures showing an annual increase in excess of 3%. This sustained improvement continues to support housing market activity and prospects for further growth over the year ahead look promising given the current macro climate,’ he said.