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October 2017

House price growth indicator remains near record highs

  • House price inflation remains elevated
  • Demand stable while supply tightens
  • Near-term price, sales expectations bullish

Ricardo Guimarães

Director at Ci

"The residential market is benefiting from a rise in mortgages, with new loans taken out by families and buyers. As a result, prices are coming back to pre-crises levels. The Residential Price Index computed by Confidencial Imobiliário is less than 1% below the maximum observed in 2010. Confidence is high, because this movement is not only debt based, it is also supported by new demand sources, namely the touristic usages and short-term rentals."

Simon Rubinsohn

Senior Economist at RICS

“The Portuguese economy continues to be one of the strongest growing in Europe with GDP expansion accelerating in the third quarter of the year. Consumers have seen real incomes increase as inflation remains subdued and the unemployment rate at near-decade lows. After years of deleveraging, households have been able to increase spending, helping to underpin the recent strength in the housing market.”