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June 2019

Price growth grinds to a halt

  • House prices unchanged over the month
  • Demand and sales contine to slip
  • Rental expectations turn flat

Ricardo Guimarães

Director at Ci

“The latest figures from Confidencial Imobiliário show an increase in new houses in the development pipeline. Since January, 23 thousand units have been added to the development pipeline, on top of almost 70 thousand others launched in 2017 and 2018. This is a reaction to the demand pressures felt over recent years and to the market valorisation trend. For real estate agents, this volume is seen as an important response to stabilize price increases, having the potential to address the lack of offer in the market. Even so, each year the pipeline only represents around 22% of the respective number of transactions, suggesting that the market might remain unbalanced.”

Simon Rubinsohn

Senior Economist at RICS

“An easing in key activity indicators over recent months is now being reflected in a stabilisation for house prices, following a lengthy period of consistent growth. Nevertheless, with the economic backdrop still solid, market expectations point to a soft landing, rather than a sharp downturn.”