Portugal House prices accelerated to 9.9% in Q3 2021

In the 3rd quarter of 2021, the House Price Index (HPI) rose by 9.9% year-on-year, up 3.3 percentage points (pp) from the previous quarter, the National Statistics Institute (INE) has reported. The price increase was more significant for existing dwellings (9.9%) compared to new dwellings (9.5%) INE said.

According to INE, on a quarter-to-quarter basis, the HPI grew by 3.6% (2.2% in the 2nd quarter of 2021). For existing dwellings, the rate of change stood at 3.9%, 1.4 pp above the increase observed in new dwellings (2.5%). Between July and September 2021, 56,464 dwellings were transacted, which represents an increase of 25.1% compared to the same period of 2020.

In the quarter under review, there were similar rates of change throughout the different months, 26.8%, 24.5% and 23.9%, respectively, in July, August and September. The value of the transacted dwellings amounted to a whopping 9.4 billion euros, up 38.7% from Q3 of 2020, a press release from INE states.

Percentage distribution of the number and value of house transactions by Q3 of 2021 (percentage points difference compared with the same period in the previous year).

Between Q2 of 2021 and Q3 of 2021, there was an increase of 6.8% in the number of dwelling transactions (20.8% in the previous quarter). Both categories of housing presented an increase in the number of transactions, 15.2% and 5.4%, respectively, in new and existing dwellings.

INE’s press advisory further states that in Q3 of 2021, 18,250 dwellings were transacted in the Metropolitan Area of Lisbon and 15,994 in the North region. Further, in Q3, the value of residential property transactions in the Metropolitan Area of Lisbon reached 4.2 billion euros, 44.6% of the total, corresponding to a year-on-year increase of 1.2 pp. In the North and Central regions of Portugal, transacted dwellings totalled 2.2 billion euros and 1.2 billion euros, respectively, corresponding to relative shares of 23.4% and 13.0%, by the same order.  

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