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Slowdown in housing prices observed in Portugal

The annual increase in house prices in Portugal has experienced a significant slowdown, with a rise of only 7.6% in the past year. This represents the largest year-on-year deceleration since June 2021. Interestingly, the city of Lisbon surpassed the national average for the first time in three years, recording a higher increase in house prices.

Portugal Piadao

According to recent data from the National Statistics Institute (INE), the real estate market in Portugal has been experiencing a slowdown for three consecutive quarters. In the first quarter, the median price of residential properties in the country was 1,565 euros per square meter, showing a 7.6% increase compared to the previous year. This growth rate is notably lower than the 10.7% year-on-year rate observed in the fourth quarter of 2022.

It is worth noting that in the second quarter of 2022, the year-on-year rate of change in median prices in Portugal reached 17.8%. However, since then, it has been on a downward trend. According to the statement from the National Statistics Institute (INE), the median housing prices increased compared to the same period last year in 20 NUTS III sub-regions. Notable growth was observed in Lezíria do Tejo (+17.5%), Algarve (+16.6%), Leiria (+15.9%), Cávado (+15.6%), and the Lisbon Metropolitan Area (+15.2%).

Within the metropolitan areas of Lisbon and Porto, among the 17 municipalities with a population exceeding 100,000 inhabitants, data from the INE indicates that 14 of these municipalities experienced year-on-year rates of change in housing prices that exceeded the national average. Notably, Loures stood out with the highest value at 26.5%. This indicates a significant increase in housing prices in these areas compared to the previous year.

Lisbon was one of the municipalities that presented the lowest year-on-year change (9.2%), but achieved, “for the first time since the first quarter of 2020 (beginning of the current series), a year-on-year rate of change higher than that of the country”, reads up in the statement from the national statistics office.

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