Only the Algarve region saw a rise in house prices in March this year as the rest of the country continued its slow decline in property values.
The prices of homes across the country in March racked up the third month running that prices have dropped according to the Confidential Real Estate Index released today which reported a fall of 0.6% from February, and a drop of 1.3% compared to March last year.
In the northern and central regions of Portugal the index revealed a depressingly negative trend, falling 2.0% and 0.3% respectively from February to March this year. Many had hoped for a better start to the year but the only positive region was the Algarve where an increase of 2.9% in house prices over the same period last year was recorded.
In monthly terms, house prices in the region rose 0.7% in March compared to February this year, primarily due to a growing number of foreign buyers entering the market especially from France where a top-end tax rate of 75% has pushed wealthier French families to look elsewhere in Europe when deciding on domicile.
