Portuguese Housing Market Survey

“Market perspectives appear to be conditioned by the evolution of construction costs, that have been rising sharply over recent months. The projections from Ci data point to an 18% increase over the last year, reaching almost 30% above the pre-pandemic level. This is seen as the most relevant obstacle to developers’ activity, and is expected to have a negative impact over the volume of new houses to be launched on the market. The reduction in new construction and the expectations of price increase driven from inflation might be the factors leading to the recovering in demand, after two months of holding.”

“Economic growth surprised to the upside in Portugal through Q1, with GDP rising by 2.6% over the quarter. This builds on last year’s solid growth and suggests the economy has plenty of momentum, with a rebound in global tourism likely to provide a support to the outlook going forward. That said, there remains plenty of risks, particularly in terms of the inflationary environment and the impact of tighter monetary policy further down the line.”