Portuguese Housing Market Survey

“The Confidencial Imobiliário House Price Index reached in May a yoy increase of 16.4% at national level. This is a record, stronger than any growth seen over the previous decade. In fact, such price increases have not been seen since 1992. Furthermore, despite being similar in nominal terms, growth in 1992 was impacted by a very different rate of inflation across the economy. Today the market is seeing a quick upward adjustment, and this generates some uncertainty about the future. To the agents that participate in the survey, this is amplified by the public and political discussion over a hypothetical bubble.”

“Although economic growth has been solid throughout 2018, the decline in the latest employment figures suggest improvements in the labour market may have stalled. This could be contributing to the more subdued tone across the latest survey results, along with seasonality, although forward looking indicators suggest growth will be resumed over the rest of the year.”