Recent data from the National Institute of Statistics (INE)
indicates that there has been a deceleration in the evolution of median house
prices in seven municipalities, including in Lisbon.
According to a report by idealista, BPI analysts consider that this scenario may continue in the near future,
anticipating “prices stabilisation” by the end of the year and a “market
correction” in 2023, with values falling by 1.5%.
According to BPI Research of November 2022, there are
several factors that have “contributed decisively” to the increase in house
prices, including a prolonged period with favourable financial conditions (low-interest rates); Low unemployment; Lack of supply of new properties; Growing
demand; Increased construction costs and acquisition of real estate as an
“But the context has changed”, warn BPI analysts. “With the
impact of inflation on family budgets and with the reversal of monetary policy
by the ECB (beginning to increase interest rates), we expect that prices will
stabilise at the end of this year”.
The consequence of this will be an adjustment in the prices
of houses for sale next year. “2023 should be a year of a slight market
correction (average price variation of -1.5%). This will result from the
cooling of demand associated with the tightening of financial conditions and
the pace of rising interest rates faster than initially forecast”, reads the
With regard to mortgage loans, analysts expect that “tighter
financial conditions with the rapid increase in indexes (Euribor rates) will
condition demand in the coming months and in 2023 as a whole”.