Year-on-year house prices increased, in the third quarter of 2022, by 6.8% in the euro zone and 7.4% in the European Union (EU), with Portugal recording an above-average increase (13.1%), Eurostat announced.
According to the european statistical service, between July and September, housing prices rose 1.0% in the eurozone and 0.9% in the EU, compared to the previous quarter.
In the third quarter of 2022, house prices in Portugal rose 13.1% year-on-year and 2.9% quarter-on-quarter.
Even with high inflation and rising interest rates on home loans, house purchases continued at a good pace, however the supply continues to shrink.
A combination of rising construction costs and house prices have helped to create a situation in Portugal of demand exceed supply for property, and this translated into a 19% drop in housing stock available for sale in the fourth quarter of 2022, compared to what was available in the same period of 2021, according to a study by idealista.
The supply of housing for sale in Portugal fell in 17 district capitals in the last year. Leading the list is Porto (-38%), followed by Guarda (-32%), Lisbon (-31%), and Faro (-30%).
The supply of housing for sale also fell in Beja (-29%), Viana do Castelo (-29%), Vila Real (-28%), Coimbra (-18%), Viseu (-17%), Funchal (-17%), Braga ( -13%), Aveiro (-13%), Ponta Delgada (-10%), Santarém (-10%), Setúbal (-3%), Castelo Branco (-3%) and Leiria (-2%).
Only in three district capitals was there an increase in the supply of houses available for purchase between the last quarter of 2021 and the same period of 2022: Bragança, was the city where the offer grew the most (42%), followed by Évora (21%) and Portalegre (1%).