Portugal House Prices Show Solid Growth

April 15th, 2016  

Portugal House Price Index

House prices in Portugal are on a rising trend according to the latest official data released by the Portuguese government.

The quarterly house pricing index rose to 94.9 in January 2016 from 93.8 the previous quarter. Year on year the average price of a property in Portugal is up 5.1%.

House prices in Portugal have been on a rising trend since January 2013 with a total gain of 10.2% over this period. Prices in Portugal fell during and after the credit crisis and are still generally below their previous peaks. However with 3 years of solid gains forecasts for returns in future years look very positive.

The rising trend has appeared following economic recovery and the introduction of the golden visa programme. While these are general figures across the market, the trend on prime residential in Lisbon, a focus for many international buyers, appears to be leading the way with even faster price acceleration in this sector.

La Vida MD Paul Williams says “We see no reason why the current trend in prices in Lisbon and Portugal in general will not continue or accelerate further in the coming 3 – 5 years. Economic recovery, favourable tax residency laws for international buyers and the attraction of investment for golden visas will continue to push prices higher.”

House prices in Portugal are still low compared to other European countries such as the UK, Germany, France and Spain according to several leading indicators.