The growth rate of house prices in Lisbon has started to normalise and, according to Confidencial Imobiliário (CI), the rest of the country should follow suit in 2020.

The real estate data bank, which monitors the dynamics of housing transaction prices in Portugal, confirmed the continuous rise of real estate prices in recent years. However, the increase seems to have been driven by cities other than Lisbon, which is actually moderating the increase.

“Once again there was a very expressive rise in house prices in 2019, albeit with a different structure – i.e. the results reflected the dynamics of second cities,” says Ricardo Guimarães, director of the CI.

In Lisbon, described as the previous “engine of national valuation”, property prices rose by 9% last year. Although described as “robust” by the director of CI, it is significantly below the 19% seen in 2018.

All things considered, the real estate data analysts expect that “the national market will begin to reflect the trend already felt in Lisbon”, meaning that prices should stabilize to a “more normal” pace.

The latest data backs up the figures from the first half of the year, which found that the increase in property prices nationwide was showing signs of a gradual slow-down (see here).

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