The price of houses in Portugal has more than doubled in the last decade and will continue to get worse. A report from the European Commission says that the European property market is finally cooling down. He warns, however, that in Portugal the price rise will continue.
Since 2010, house prices have risen sharply, but the years of the pandemic were those that recorded the biggest increases. The European Commission’s report, which makes the autumn macroeconomic forecasts, takes stock of the real estate market in each Member State.
It places Portugal in the group of countries where house prices have more than doubled in the last decade – which also includes Ireland, Austria, the Czech Republic, Luxembourg, Latvia and Lithuania.
Brussels says the trend in European real estate is slowing down, but not in all countries. Once again, Portugal stands out as one of the Member States where the cooling in prices is not yet visible, nor even expected.
According to the European Commission, several countries already appear to have reached peak prices. This is not the case in Portugal, Bulgaria, Croatia, Greece and Slovenia.
The report also recalls that, in Portugal, as in other countries, rising interest rates have made the housing market inaccessible to many families.
Euribor rates even dropped, this Wednesday, in all maturities, but they still remain at very high values - much higher than those recorded at the end of 2021, before the war in Ukraine started.
Now, the 6 and 12 month rate is above 4%. 3 months is very close to this value.