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Portuguese home prices are calculated by the INE Home Price Index, Up 12.9% in the first quarter, Accelerated by 1.3 points year-on-year.And that “More expressive” price increase This indicator was created in 2010.
The National Institute of Statistics (INE) adds that 5.9% of the total number of transactions (2,556 dwellings) is related to buyers with tax residences outside the country, mostly foreigners. 10.4% when considering the transaction volume..
Between January and March 2022, 43,544 homes were traded, 26% more than in the first quarter of 2021, which was heavily affected by the pandemic containment. Talking about transaction amounts, the difference was even greater. “The transaction value for the reference quarter was around € 8.1 billion, an increase of 44.4% compared to the same period in 2021,” said INE.
The house price index also rose 3.8% compared to the previous quarter, accelerating (compared to the quarterly 2.7% rise in the previous quarter). Prices for pre-owned homes rose 4.4%, outpacing new home prices (1.8%).
In the first quarter, 13,464 homes were traded in the Lisbon metropolitan area (30.9% of the total). “In this region, the relative weight (-0.9 percentage points) has decreased compared to the same period last year for the second consecutive quarter,” says INE.
In the northern and central regions, there were 12,371 and 8,721 transactions, respectively, reducing the weight of regional shares. On the other hand, in the Algarve, housing transactions totaled 4,129 units, or 9.5% of the total. According to the data, “this was the fastest growing region in terms of 1.5 percentage points in addition to the relative regional weight.”
In the analysis note, a team of BPI economists said, “The average rate of increase in house prices was 9.4% in 2021 (8.8% in 2020), and the first quarter data is high in 2022. Set to level. Consistent evaluation. “
“The main horizon cloud in this scenario could be due to continued inflation and higher funding costs due to higher reference rates in the second half of the year. Therefore, the market is expected to be sluggish in the long run.“, BPI says.
“Suffering” from rising interest rates. Is this a place where home prices go down?