Portugal has the third largest increase of the EU in housing prices

  • ECO News
  • 18 January 2018

In the third quarter of 2017, only Check Republic and Ireland presented steeper growth rhythms in real estate prices than Portugal.

Housing prices keeps accelerating in Portugal. This increase puts Portugal in the third position of the ranking for the largest increase in real estate prices from the European Union (EU), according to data disclosed by Eurostat this Thursday.

In the third quarter of 2017, housing prices had a 10.4% homologous increase in Portugal, a growth rhythm that was only surpassed by the increases in Check Republic and Ireland.

Housing prices rise in the third quarter of 2017

Source: Eurostat

In Portugal, the amount of the increase in prices in that period had been disclosed in December by Statistics Portugal (INE). The data disclosed this Thursday by the European statistical office only come to show the strong acceleration in prices registered in the country in comparison to the reality in other European Union countries.

According to Eurostat, in the third quarter of 2017, the average price of houses increased 4.1% in the Euro Area and 4.6% in EU, in comparison to the same period of the previous year. The same is to say that Portugal grew more than double the European average rate.

Within the European Union, Portugal is only surpassed by the growth rhythm in prices seen in Check Republic, where prices had an average of a 12.3% increase, and in Ireland, where the average rise was of 12%.

In fact, there was only one country from Europe that had a decrease in housing prices between the beginning of July and the end of September: Italy. In that country, prices had a slight decrease of 0.9%. No statistics were disclosed about the direction of the housing prices in Greece.

The increase in the average price of the real estate sold in Portugal takes place in a time of economic outlook improvements in the country, which leads more people to move forward and purchase a house. This scenario is fed by the greater openness from banks to finance these types of acquisitions, but also because of demand from investors, especially foreigners.