Portugal tops world in real house-price growth as global market slips
Portugal recorded the biggest year-on-year rise in inflation-adjusted residential prices, while most other regions saw declines.
Inflation-adjusted residential prices in Portugal jumped the most among all countries, surpassing the euro-area average and far exceeding the modest gains seen in Spain and Italy. North Macedonia and Bulgaria also posted notable increases. In the first quarter, real house prices worldwide slipped, with sharper drops in China and Canada and modest declines in the United States and United Kingdom.
On a nominal basis, global prices rose slightly. Portugal’s housing shortage and strong demand in cities such as Lisbon, Porto and the Algarve keep pressure on prices, reflected in rising asking prices. The government is promoting construction through lower VAT and faster planning, but new supply will take time to affect affordability.
Why it matters
Portugal’s rising home prices show a rare break from the global housing downturn, impacting buyers and policy decisions.
In this story
