Portuguese Housing Market Survey

“If, instead of declining after the crisis in 2007, house prices increased in line with the Consumer Price Index, they would be at the same level they are today. This means that following the recovery in 2013, the housing market has already surpassed both the nominal effect, due to the crisis, and the real effect, resulting from the inflation accumulated over the last 10 years. Therefore, the current opportunities for capital gains in the near future are less obvious, something that the market is sensing, and this is being reflected in expectations.”

“The improvement in the Bank of Portugal’s coincident economic indicator over the past three months suggests the ongoing economic expansion still retains solid momentum. Even so, activity in the housing market does appear to have lost some impetus in recent months. With macro fundamentals remaining generally supportive, it appears that lack of stock is a key factor impeding the market at present."