House prices to rise 8% per year in Portugal
Experts Warn of Over 8% Annual House Price Surge in Portugal Over the Next Decade
A comprehensive study conducted by the IFO Institute at the University of Munich, Germany, has projected that house prices in Portugal will experience an annual growth rate exceeding 8% over the course of the forthcoming ten years. This study, which aggregates insights from over a thousand economists worldwide, sheds light on the projections for the global housing market.
According to the Economic Experts Survey, a survey undertaken by the IFO Institute at the University of Munich, encompassing forecasts from more than a thousand economists and specialists regarding the global housing market landscape, house prices in Portugal are expected to rise at an annual pace of 8% for the next decade.
Distinct variations in expectations for the evolution of house prices over the ensuing decade are particularly discernible in Europe. While moderate escalations in real estate prices are foreseen in Western and, to a lesser extent, Northern Europe, with projections of 6.4% and 9.9% respectively, Southern and Eastern Europe are anticipated to witness nearly triple growth rates of 18.4% and 14.9% respectively.
As elucidated by the report authors, the projected increase for Portugal stands at 8.2% per year. Examining the broader context of Southern Europe, the increases are poised to range between 10% and 15% annually, marking a significantly robust average trend.
Timo Wochner, an investigator from the IFO Institute, indicates that this escalation is grounded in the perspective that this inflation will be more pronounced “compared to Malta, Serbia, and Albania,” where annual house price growth is projected to surpass even that of Portugal.
Global Trend Endures: Persistent Upward Trajectory in Real Estate Values
However, certain regions are poised for even more substantial growth, such as East Africa and parts of South Asia, projecting annual increments exceeding 20%. In Western Europe, North America, and Oceania, the increments are expected to be more modest, ranging from 6% to 8%.
The lowest annual growth rate in house prices, as posited by specialists, is anticipated in Central Africa, standing at 5%.
Economists express notable pessimism for North Macedonia and Bosnia and Herzegovina, and this outlook extends to Southern European nations including Italy, Spain, and Portugal, according to these forecasts.
Economists’ Perspective on the Future of the Real Estate Market
The latest Economic Experts Survey (EES), jointly conducted by the IFO Institute and the Institute for Swiss Economic Policy (IWP), scrutinizes economists’ prognostications regarding house price expectations on a global scale. The findings reveal that substantial increments in property prices are on the horizon worldwide over the coming decade.
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