For the first time in six years in Portugal, home sales recorded a negative trend in the second quarter of 2019 compared to the previous year. In contrast, the price index rose by 10.1% over the same period. This decline was anticipated by specialists in the Portuguese real estate sector, its magnitude is now known: 6.6% decline. These figures are available in the latest study published by the National Institute of Statistics of Portugal. Is this decline in the number of transactions accompanied by a rise in prices a reversal of trend, or a simple pause in the Portuguese real estate market? What are the official figures of Portuguese real estate? Lisbob, the expatriate's assistant in Portugal tells you all about this decline in home sales in Portugal.
6,6 % drop in home sales in Portugal for the first time since 2013
6.6% less transactions, 10.1% more expensive
In the second quarter of 2019, the Portuguese IPHab housing price index increased by 10.1% year-on-year, an increase of 0.9 percentage points over the previous quarter. According to the Portuguese National Institute of Statistics (INE), the two categories of housing (existing and new) recorded similar rates of change over the period considered, reaching respectively 10.1% and 10.3%.
Compared to the previous quarter, the IPHab rose by 3.2%, with price increases being more pronounced for new homes (4.1% increase), 1.1 percentage points higher than in the previous quarter. existing dwellings. The rise in new housing prices accelerated, with an increase of 10.3% (6% in the first quarter of 2019).
During the period under review, the average annual rate of change of the IPHab was 9.3%, down 0.2 points from the previous quarter, a fourth consecutive quarter in which overall decreased. Existing housing continued to exhibit a higher rate of change than new housing (9.7% and 7.6%, respectively).
6.1 billion € of transactions, down 1.9%
INE statistics also show that between April and June 2019, 42,590 dwellings were exchanged, a decrease of 6.6% compared to the second quarter of 2018. This is simply the first year-long decline. to the other of the number of transactions observed since 2013.
The total value of real estate transactions during this period was around € 6.1 billion, down 1.9% year-on-year. Of the total transactions, 6.107 involved new homes, a drop of 9.4% compared to the second quarter of 2018. For their part, sales of existing homes continued to account for the majority of transactions (85.7% of the total), reaching 36,483 transactions, which represents a decrease of 6.2% compared to the same period in 2018.
Is it temporary or is this a real change ?
Inland regions are on the rise
Between April and June 2019, 14,804 dwellings were sold in the Lisbon Metropolitan Area and 12,043 in the Northern Region, accounting for 63.1% of Portugal's total transactions, the lowest percentage since the fourth quarter of the year. 2016.
The Algarve also recorded a decrease in its relative share (minus 0.3 percentage point), with a total of 3,735 sales.
On the other hand, the Alentejo is on the rise: the region has recorded an increase in sales volume and value for five consecutive quarters, and the Centro region, the Alentejo, the autonomous region of the Azores and the autonomous region of Madeira have all followed the same trend for three quarters.
