The increase in house prices and rents in Portugal is much higher in Portugal than the average for EU and Eurozone countries, according to data released by Eurostat.
The price of property in Portugal, both for buying or renting a house has skyrocketed over the last ten years, rising by over 40% and 20% for buying and renting respectively between 2010 and the third quarter of 2020, a period already marked by the emergence of the COVID-19 pandemic. This is higher than the average growth in the European Union (EU) and Eurozone countries, which recorded increases of over 20% and 10% in house prices and rents respectively. Let's have a look at the data released by Eurostat in January 2021 which shows how property prices in Portugal hve soared in the last decade.
According to the European Statistics Office, when it comes to buying property, house prices have risen more than rental prices in 16 EU Member States, with prices increasing in general in 23 Member States, with price reductions during the decade only observed in 4 countries. The biggest rise in property prices are seen in Estonia (105.1%), Hungary (92.2%), Luxembourg (90.5%), Latvia (83.6%) and Austria (81.3%), while the biggest falls in price of the decade occurred in Greece (-31%), Italy (-15.5%), Cyprus (-7.7%) and Spain (-4.5%).
In the case of the rental market, the figures requested by landlords for monthly rental payments increased in 25 EU Member States and fell in only 2 countries between 2010 and the third quarter of 2020. The biggest increases were seen in Estonia (136.6%), Lithuania (106.9%) and Ireland (62.2%), while the only price reductions for property rentals were seen in Greece (-25.2%) and Cyprus (-4.5%).
House prices in Portugal grow 7.1% in one year
In year-on-year terms, i.e. in the third quarter of 2020 compared with the same period in 2019, house prices rose by 4.9% in the eurozone and 5.2% in the EU, with Portugal rising above the average with property price increases of 7.1%.
Data released by Eurostat also confirm that in the third quarter of 2020, house prices rose by 1.3% in the eurozone and 1.4% in the EU, while Portugal showed a below average increase of 0.5%.