House prices rose 12.6% in 2022, more than in 2021

2021 saw prices rise by 3.2%


The Housing Price Index (HPI) in Portugal rose 12.6% in 2022, 3.2 percentage points more than in 2021, Statistics Portugal (INE) reports today.

In a statement at a moment when the political landscape is minutely focused on the housing crisis (and the government’s blueprint for addressing it), INE said that the average annual increase in prices for existing homes (13.9%) exceeded that of new homes (8.7%).

In the last quarter of 2022, the year-on-year rate of change of the IPHab was 11.3%, 1.8 percentage points less than in the previous quarter.

In the fourth quarter of 2022, the price growth of existing housing was higher than that for new housing, 12.7% and 7.1%, respectively.

In 2022, 167,900 homes were bought and sold, 1.3% more than in 2021, and in value, totalled €31.8 billion, which was an increase of 13.1% compared to the previous year.

By category, existing dwellings recorded a 0.1% reduction in the number and an 11.6% increase in the value of transactions, while for new dwellings, there was an 8.5% increase in the number of transactions and an 18.2% increase in value.

In the fourth quarter of 2022, 38,526 dwellings were transacted, -16.0% less than in the same quarter of 2021 and 8.8% less than in the previous quarter.

In the last three months of 2022, transacted dwellings totalled €7.4 billion, 10.5% less than in the same period of 2021.

INE also indicates that housing acquisitions by the institutional sector of households increased by 2.7% in 2022 compared to 2021, settling at 145,515 units and totalling €27.3 billion.

In 2022, there were 10,722 sales of dwellings, for a total of €3.6 billion, to buyers with tax domicile outside the country, corresponding to a growth of 20.2% and 25.3%, respectively, in number and value, compared to 2021.

All this comes in the context that President Marcelo has been seen to have “demolished” the government’s ‘Mais Habitação’ proposals (‘demolished’ being the expression used by deputy editorial director Eduardo Dâmaso in a column today), due to come up for debate in parliament next month, once the period of public consultation is over (due to end this Friday March 24).

Opposition parties, from left to right, have said they will be voting against the government’s proposals, which in the main have been seen as an exercise in propaganda.

This morning Observador online (cited by SIC television news) has said the measure allowing for the coercive leasing of vacant habitable properties is more than likely to be referred to the Constitutional Court by President Marcelo.

Marcelo has in the meantime rubber-stamped the measures recently approved by the government for giving vulnerable families rental and mortgage support, albeit saying he would have preferred to see the scope widened.

DECO consumers association has already said only the most vulnerable families are likely to benefit from the government’s support.

Source: Lusa/ additional information [email protected]