Real Estate
Portugal’s Runaway Home Market Shows Signs of Hitting a Ceiling
- Housing market is no longer in a bubble, DBRS Morningstar says
- End of golden visas doesn’t mean foreign demand will disappear
Residential buildings in Lisbon, Portugal.
Photographer: Goncalo Fonseca/BloombergThis article is for subscribers only.
Home prices in Portugal, one of Europe’s hottest property markets, have started to slow in recent quarters and have likely peaked as higher interest rates cools demand, according to DBRS Morningstar.
“Prices are not in a bubble but likely reaching a ceiling,” said a report by senior credit analyst Andre Soutinho and other DBRS researchers. The study cited cited foreign demand, historically low levels of new construction and higher building costs among the factors affecting the country’s residential market.