Portugal Leads Global Real House Price Gains at 15.2% as World Prices Fall 1.2%
Updated
Updated · The Portugal News · Sep 2
Portugal Leads Global Real House Price Gains at 15.2% as World Prices Fall 1.2%
3 articles · Updated · The Portugal News · Sep 2
Summary
Portugal’s inflation-adjusted residential property prices rose 15.2% from a year earlier in the first quarter, the strongest increase tracked, ahead of North Macedonia’s 12.5% and Bulgaria’s 10.8%.
The surge contrasts with a 1.2% global decline in real house prices, as advanced economies slipped 0.2% and emerging markets fell 2%; China and Canada each dropped 7%, while the US and UK fell 2%.
Portugal’s rise far outpaced the euro area’s 2.6% gain, with Spain up 10% and Italy 4%, underscoring how sharply the country stands out even within Europe.
A housing shortage in Lisbon, Porto and the Algarve has kept pressure on prices as supply lags demand; Idealista put Portugal’s median asking price at €3,207 per square metre in August, up 7.5% year on year.
The government is trying to unlock supply with 6% VAT on qualifying construction and faster planning and licensing, but new building is unlikely to ease affordability strains quickly.