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0:59 — Is Portugal one of the countries where owning a house costs more and more?

The graph goes back five years, to the first quarter of 2017, and shows the relative position of 46 OECD countries — Organization for Economic Co-operation and Development, in the increase in real housing costs compared to 2015. As of the 3rd quarter of 2017 , Portugal is always in the top ten positions in the group and ends the series in 5th position, only behind Hungary, Iceland, Czechia and New Zealand.

With more affordable homes now than in 2015, are Brazil, Saudi Arabia, South Africa, Italy and also India and Indonesia — although in these last two cases the most recent figure is still from the 4th quarter of 2021. The remaining countries with values ​​for the 1st quarter of 2022, including Portugal, have indices above 100, that is, they made the real cost of housing more expensive.

The real cost of housing considers the nominal value of housing prices and household consumption expenditures in each country. The two indices are seasonally adjusted and compare with the base value (2015=100).

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Real Housing Cost Variation
Compared to 2015 (base 100)

OECD

Portugal (165.2) has a much higher index than the OECD average (134.3) and the eurozone average (127.7) in the 1st quarter of 2022. The Portuguese line has been moving away from consistent manner of these two reference averages since 2015 (see chart above).

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Nominal housing cost index
In Portugal and in the OECD (2015 = 100)

OECD

The sale price of houses in Portugal rose from the late 1980s — the long series of OECD house price data starts in 1988 — until the crisis subprime in 2007. Years of crisis and price decline followed until 2013.

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The nominal cost of housing, which includes the selling price of new and used homes, has risen for eight consecutive years. Also in this case, Portugal has a much higher index (168.8) than the average of OECD countries (145.2) compared to 2015 prices (=100).

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Lease price index
In Portugal and the eurozone (2015 = 100)

OECD

The rental price index also compares annual values ​​with 2015 (=100). The Portuguese indicator was always below the eurozone average until 2013. With the update of the oldest rents, the national market aligned with the average of the 19 countries and in the last two years the Portuguese index was even above the partners of the single currency. In other words, renting in Portugal was more expensive than in other countries in the same group.