Portugal Leads with 60% House Price Surge in 5 Years

Discover how Portugal's housing market surge compares to Greece, Belgium, Spain, Italy, and Switzerland as reported by Jornal de Negócios.

The European Commission has issued a warning about the perceived overvaluation of property in Portugal, a concern that has now been confirmed by DBRS. According to a recent report by the rating agency, house prices in Portugal have experienced the most significant growth since 2018, with a staggering increase of 60%. Among the 18 countries evaluated in the DBRS report, Portugal stands out as the nation with the highest housing appreciation between the last quarter of 2018 and the third quarter of 2023.

Portugal Leads with 60% House Price Surge in 5 Years | Jornal de Negócios Report

The surge in house prices in Portugal has been attributed to a 60% increase over the past five years, reaching its peak. While Portugal leads in housing appreciation, other European Union countries such as Greece, Belgium, Spain, and Italy have also seen their house prices peak. Switzerland is also experiencing record-high housing costs.

DBRS has expressed concerns about the rising housing values in several countries, although it acknowledges that the risks to financial stability are currently under control. Specifically focusing on Portugal, the rating agency has warned that government instability following the 2024 legislative elections could jeopardize the execution of the Recovery and Resilience Plan (PRR).

The warning issued by the European Commission and confirmed by DBRS highlights the need for careful monitoring of the property market in Portugal and other countries experiencing rapid housing appreciation. The potential risks to financial stability and the execution of important economic plans underscore the importance of addressing the issue proactively.