Could this be good news for home buyers? The increase in property prices in Portugal has gradually been showing signs of slowing down. According to the latest residential Price Index from Confidencial Imobiliário, there has been a slight slowdown in the value increase of properties nationwide.

Despite recent news that house prices were on the up (see more here), the figures show that there has been a gradual slowdown compared to last year. After peaking in November 2018, property prices have been increasing at a slower rate.

The index, released by the real estate data bank last week, found that the price of houses has risen 14.7% in the third quarter on a year-on-year basis, following a 14.8% increase in the second quarter and a 15.9% increase in the first (as reported here).

In quarterly terms, there has also been a deceleration in growth. The price of housing increased 3.2% in the third quarter, compared to 3.9% in the second quarter.

“This represents a slight slowdown compared to the year-on-year increase registered in the previous quarter and confirms the trend that there is an appeasement in the increasing value,” said the report.

The trend is particularly evident in Lisbon, where property prices have been shooting up in recent years. Prices in the capital show the lowest year-on-year increase since the end of 2015, now standing at 9.6%.

While the data for the last quarter is yet to be gathered, Ricardo Guimarães, director of Confidencial Imobiliário, expects this behavior to continue until the end of the year.

Released every quarter, the Confidencial Imobiliário Price Index tracks the price of housing in 278 municipalities across the country to identify national market trends.

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