House price rise in Portugal 4th highest in Europe

Paul Rees 12 April 2019

OlhaoViewSmall Portugal was at the top of the house price hike last year. A fourth quarter rise of 9.3% equals Luxembourg and the Netherlands, surpassed only by some countries in Eastern Europe - Slovenia (18.2%), Latvia (11.8%) and Czech Republic (9.9%)

Prices in the EU and the Eurozone have increased by an average of 4.2% over the past year while in some countries house prices have fallen, such as in Italy - by 0.6%.

This ever-increasing house price inflation has caused some alarm, as it largely driven by the ultra-expansionary monetary policy by the European Central Bank with interest rates at 0%.

There are fears that bubbles may form in European real estate with the International Monetary Fund warning of the overvaluation of house prices.

The body led by Christine Lagarde expects real estate prices to fall sharply in the next three years.

Comments

0 #3 Peter Booker 2019-04-17 09:33

Gerry is right. The quantitative easing (creation of paper money which is not produced by work) inevitably produces inflation, which affects the whole of the economy, and in particular, property.

0 #2 Gerry 2019-04-14 15:54

All of the 60 billion euros printed each month for 18 months had to go some where....so after banks shored themselves up, it finds its way into property.......until people take the profits and sell..3 years sounds about right

+3 #1 Luff-a-lott 2019-04-14 08:48

Fair enough, the headline says a lot but also says nothing, i want to see a breakdown of the sales by region, price and type of sale then a better picture can be viewed otherwise the story is meaningless.

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