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February 2019

House price inflation continues to ease

  • Actvity indicators remain virtually unchaged
  • Price growth momentum fading
  • Lack of stock remains a key issue

Ricardo Guimarães

Director at Ci

“Market participants comment that buyers are anticipating the impact of new constructions to come on price levels. But some expect that the arrival of new houses will push prices up, despite its effect on the balance between supply and demand. At the same time, for others, price increases in central locations is an opportunity for secondary markets, where investment is starting to be seen. More widely agreed on is the idea that all new public measures oriented to the rental marker are squeezing rents higher and reducing the number of houses to let.”

Simon Rubinsohn

Senior Economist at RICS

“Employment growth, although still healthy, has softened a touch over recent quarters, and this seems consistent with the steadier trend coming through in the housing market. While expectations from survey participants remain positive, it does now appear that growth in market activity will be more moderate going forward.”