Foreigners buy 4 out of 5 houses in the Algarve

House prices in Portugal show 6th largest year-on-year increase in EU

Data refers to first quarter of 2023

Prices for residential property in Portugal in the first quarter of the year showed the 6th largest year-on-year increase in the European Union, at 8.7%, according to figures from Eurostat released today.

In comparison, prices rose just 0.4% in the eurozone and 0.8% in the EU as a whole.

According to the EU’s statistical service, year-on-year increases in house prices slowed in the eurozone and EU in comparison with the fourth quarter of last year, when rates were 3.0% and 3.6% respectively. These prices were down 0.9% in the eurozone and 0.7% in the EU as a whole on the previous quarter.

On a year-on-year basis, six EU member States recorded declines in house prices: Sweden (-6.9%), Germany (-6.8%), Denmark (-6.2%), Finland (-5.1%), Luxembourg (-1.5%) and the Netherlands (-0.1%).

In the remaining 21 EU countries, prices rose, most notably in Croatia (14.0%), Lithuania (13.1%) and Bulgaria (9.5%).

In the quarterly comparison, prices fell in 11 member states, notably in Luxembourg (-4.1%), Germany (-3.1%) and Finland (-1.8%).

The largest quarter-on-quarter rises, meanwhile, were in Denmark (2.5%), Hungary (2.2%), Croatia and Cyprus (2.0% each).

In Portugal, prices were up 1.3% on the quarter and 8.7% on the year – the sixth highest year-on-year increase in the EU.

Source: LUSA