Portuguese Housing Market Survey

“The survey results confirm the latest figures regarding the House Price Index, computed by Confidencial Imobiliário, that shows a significant price acceleration in the last couple of months, especially in May, when prices reached a 2,5% monthly increase, pushing the yoy change up to 4,6%. This was directly resultant from the general pandemic unlock started in March, pushing prices up after a long period of stabilization. At the same time, the number of transactions appears to be accelerating, for instance in Lisbon, that saw a 24% increase in the last 3 months.”

“The European Commission’s Economic Sentiment Indicator now stands at its highest level since late 2018 across Portugal, while data on retail sales signals a strong consumer spending rebound is underway. That said, the future path of pandemics still poses significant risks that could stifle the recovery, with the tourism sector particularly vulnerable. Nevertheless, barring any downside scenarios materializing, the overall economy seems set to grow by over 6% this year, with GDP expected to return to its pre-crisis level by the middle of 2022.”