Portugal’s housing prices should soar 9.5% this year, forecasts the rating agency Standard & Poor’s in its latest report about Europe’s residential market.
«Strong domestic and foreign demand, as well as tight supply, are underpinning strong house prices increases in Portugal», explains the report, highlighting the effects of such programs as the Golden Visa or the Non-Habitual Resident.
«We expect prices to rise 9.5% this year, but we forecast price pressures will gradually ease amid slower growth, the rising cost of borrowing, and deteriorating affordability», says the report.
Thus, according to this projections, prices should grow by 7% in the next year, 6% in 2020 and 5% in 2021. Over the first quarter of the year, the annual house price growth accelerated to 12.2%, from 10.5% in 2017. In Lisbon, the average value per square meter rose by 20% to €2,581. In Porto, this value was up 23%, reaching €1,379. Nevertheless, S&P stresses «that the market overall remains affordable, with the price-to-income ratio still 7% below its long-term average».
Original Story: Vida Imobiliária | Ana Tavares
Edition & Translation: Prime Yield