House prices in Portugal rose 7.8% in the second quarter year-on-year, an acceleration of 0.8 percentage points compared to the previous quarter, according to the price index updated by the National Institute of Statistics (INE) on Friday. The index also points to an increase in the number of transactions, at a time when interest rates have started to fall from last year’s highs.
“In the second quarter of 2024, the House Price Index (IPHab) increased by 7.8% year-on-year, 0.8 percentage points (pp) more than in the previous quarter. In the reference quarter, the rate of change in used housing prices was 8.3%, higher than that observed for new housing (6.6%),” the INE indicated this Friday.
Compared with the previous quarter, the price index rose 3.9% in the second quarter, also an acceleration after prices rose only 0.6% in the first quarter compared with the fourth quarter.
The INE adds that, “between April and June 2024, 37,125 homes were transacted, for a total value of 7.9 billion euros.” These values represent an increase, compared to the same period of the previous year, of 10.4% and 14.1%, respectively, adds the official Portuguese statistical agency.
The weight of foreigners – or, strictly speaking, of people with tax residence outside Portugal – is decreasing, adds the INE. “In the second quarter of 2024, buyers with tax residence outside the national territory acquired 2,464 homes (6.6% of the total), which represents a year-on-year reduction of 2.8%,” notes the INE.
Source: Observadora
