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PROPERTY PRICE EVALUATION IN EURO ZONE

PROPERTY PRICE EVALUATION IN EURO ZONE
By Joana P. . 4 years

A rise of 6.9% in house pricing in Portugal.

The first quarter 2016 recorded the largest growth in house prices in Portugal since the second quarter of 2008. This corresponds to 6.9 percentage points, according to Eurostat data.
 
 
Portugal was not the only country in Europe to register increases in housing prices, it also occurred in France, Germany, United Kingdom, Ireland and even in neighboring Spain.


The chart (above) verifies changes in the housing prices since 2005 in the main European countries. Portugal's records date from 2008 onwards. This can be clearly seen as the sale of real estate in Spain and Ireland rose nonstop up to the subprime crisis in 2007, the date from which it started to depreciate. Year 2013 gives a slight return, making the prices in these two markets recover.

In Portugal, there was an improvement in the beginning of the first decade of the millennium and a degradation by 2014, the year that the industry started to show signs of improvement. 2015 was a year of sustained reform in the Portuguese real estate.

As for the rest of Europe, there is a trend of increase in prices in housing in Sweden, Germany and the UK. The IMF, among other public international organizations, came already alert to the risk of a housing bubble in these countries. In Sweden, for example, the housing devalued by 13% in one year only and Germany has increased by more than 4 percentage points in 2015.