The sale price of houses in Portugal rose by 14.2% in March 2018 in comparison with the same month in 2017. We have to go back 26 years to the first quarter of 1992 to find a record of price evolution higher than the current one: that year, the year-on-year price development was 16.1%.
In this regard, data from the Residential Price Index (Índice de Preços Residenciais or IPR) from Confidencial Imobiliário (Ci) are used as an indicator of real estate prices over time. It is calculated from information on the actual prices of transactions captured within the framework of the Residential Information System (Sistema de Informação Residencial or SIR).
In a statement, Ci said, "For the first time since the financial crisis, house prices have surpassed the peak reached in the market (in the third quarter of 2007) and are now 2.1% higher. At the end of last year, despite the recovery that has been taking place since the second half of 2013 and which has intensified in pace since mid-2015, house prices remained 0.9% below the peak of more than ten years ago."
According to the company, which specialises in the production and dissemination of market analysis indicators, the increase recorded in the first three months of 2018 once again showed an acceleration in the rate of the year-on-year recovery of property prices, which in the two previous quarters had been 10% and 12.8%, respectively. This is a trend that has intensified since the third quarter of 2015 and was only slightly interrupted at the end of 2016.
"This result is also influenced by the quarterly growth in house prices for 11 consecutive quarters. In March, the quarterly rate of change reached 3.1%, keeping this indicator above the 3% threshold, a level observed since the middle of last year," the company’s statement reads.