Properties in Portugal have lost 25% of their value since 2000

Paul 29 February 2016

cascais An OECD report released today shows that the domestic property prices in Portugal have depreciated 26% since the year 2000, the highest drop in the 24 countries surveyed.

Between 2000 and 2015, the price of homes dropped 20% in Japan and 11% in Greece but Portugal's 26% led the field.

In the other countries surveyed, house prices now are higher than in 2000, notably in Sweden, New Zealand and in Australia where they have more than doubled.

Even in the residential markets in Spain and Ireland, which in recent years saw their housing bubbles burst, current prices are now above those in 2000.

These figures were released today in the annual OECD report, ‘Going for Growth.’

Despite the depressing housing figures, Portugal’s economic reforms were ahead of the game following the economic and financial adjustment programme agreed with the Troika.

According to today's updated figures, between 2011 and 2014, only Greece overtook Portugal for implementing those structural reforms that the OECD believes are necessary to increase economic growth, productivity and employment, and labour market reforms.

However, the OECD continues to place Portugal in the group of countries facing the most serious challenges, along with Greece, Ireland, Italy, Spain and Slovakia.

Among the main problems facing the country’s growth is a fall in investment, youth unemployment and long-term unemployment.

Comments

-1 #3 john clare 2016-03-06 07:44

Those of us who follow property prices, and have done so for decades have always known that buying real estate in Portugal is a very silly idea economically speaking. I first checked out property prices in the Algarve in the sixties when there were 65 escudos, or thereabouts, to the £. Forty years later there were 315 to the £. Work out what that did to the value of your home. It would have had to increase in price by 500% just to stay the same in sterling terms. Now check what happened to UK property prices in the same period and weep. Buying in Portugal is, and always has been, half-witted.

-1 #2 dw 2016-03-01 09:46

Cotradictory and economicly illiterate nonsense from the OECDl. The 'structural reforms', ie austerity, do not lead to growth, but recession and stagnation, as their own report demonstrates. The era of perpetual growth is coming to an end in any case and the only things that are growing are inequality, debt, the property bubble, instability and global temperatures.

-1 #1 Dilwyn 2016-03-01 08:06

Portugal implementing structural reforms or, as always before, just pretending to be doing so ? What happened to halving the public sector and re-training the rest. Opening their business sectors to Europeans and not just Chinese? Why is it still so difficult to open a B&B ina reasonable time and at a reasonable cost? And Fast tracking business frauds that involve citizens from ex-Pink Map countries ? None of these inward investors intended being robbed by their Portuguese partners.That would catapult Portugal forward.

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