Portugal Housing Prices Rise Slows to 7% in Q1: INE Data

According to the National Statistics Institute, Portugal housing prices increased by 7% in the first quarter, marking a slowdown compared to previous quarters.

The Portugal housing market in the first quarter of this year saw a 7% increase in prices, according to data released by the National Statistics Institute (INE). This represents a slight slowdown compared to the previous quarter and a more significant slowdown compared to the same period last year. A total of 33 thousand houses were sold during this period, amounting to 6.7 billion euros in value.

The Housing Price Index (IPHab) rose by 7% year-on-year, a decrease of 0.8 percentage points from the previous quarter. This marks the smallest price increase since the first quarter of 2021. The average annual rate of change in the Portugal house price index was 7.8% in the first quarter, a slowdown of 0.4 percentage points from the last quarter of the previous year. Existing homes saw a higher price increase (8.2%) compared to new homes (6.6%).

In terms of transactions, 33,077 homes were sold in the first three months of the year, a decrease of 4.1% compared to the same period in 2023. The total value of houses sold was 6.7 billion euros, with the majority (85.5%) purchased by families, amounting to 5.7 billion euros. However, there was a 3.4% reduction in the number of houses purchased by families year-on-year.

Buyers with tax domicile in the territory nationwide saw a 3.1% decrease in house purchases year-on-year, totaling 31,010 transactions. This accounts for 93.8% of the total number of transactions and is the highest relative weight since the first quarter of 2022, according to INE.

The Portugal housing market in the first quarter of this year experienced a moderate increase in prices, with a slight slowdown compared to previous quarters. The number of transactions and total value of houses sold also saw a decrease compared to the same period last year.