Lisbon is where house’s prices have the lowest rises
IMF doesn’t consider alarming the rise in house prices that occurred in Lisbon
Lisbon is one of the 42 capitals of the world that recorded the mildest increases in house prices between 2013 and 2017, in real terms (discounting inflation), according to a study released by the International Monetary Fund. This report, however, warns that it’s necessary to be aware of this situation, as there may be a risk of a sudden stoppage and consequent damage to the economy.
Since the end of the global financial crisis, house price’s changes have been very different in the various cities under analysis. For example, Shanghai, China, was the city with the highest increase of 14% in just four years, followed by Auckland, Sydney and Budapest, where prices rose 10%. The cities in the ranking where the lowest prices fell were Moscow (Russia) and Rome (Italy), with real declines of around 5%.
The IMF says that house prices in Lisbon have actually increased over the last four years. However, it should be noted that this growth was more moderate, even more so than in Madrid, with house prices rising slightly more than 1%.
Lisbon suffered a heavy devaluation in house’s prices during the financial crisis, and there was a drop in access to credit and unemployment growth. In the 42 capitals analyzed by the IMF study, the variation of house prices in Lisbon is only the 29th largest.
"Rising home prices have been a component of the economic recovery in many countries since the global financial crisis," the IMF report reads. "This generalized boost to economic growth may support additional demand for homes in many countries, leading to additional pressures for rising prices."
"While recent housing price growth has not been driven by the credit cycle, macro prudential authorities [Banco de Portugal] should remain vigilant and ready to take additional necessary to prevent the accumulation of imbalances and strengthen the resilience of the banking system."
Photo Credit: Notícias ao Minuto
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