Portugal escaped real estate bubble

Researchers have revealed this week that Portugal was one of the “most resistant” countries to slumps in property prices which have affected a series of countries across the globe, most notably the United States, Ireland and Spain.

House market and Car Hire in PortugalAccording to research funded by Portugal’s largest bank, Caixa Geral de Depósitos (CGD), there was no property bubble to burst in Portugal, as there was no rapid increase in real valuations of housing to unsustainable levels.

Using data supplied by the European Central Bank and a series of prominent sources, the study, entitled A Actualidade do Sector Imobiliário Residencial: Ajustamentos e Desafios says that Portugal, like Germany, emerged relatively unscathed from the housing bubble burst.

“Between 1996 and 2006, the accumulated real valuation of housing prices exceeded 80 percent in the United States, Holland and Greece, 110 percent in Spain, 140 percent in the United Kingdom and 180 percent in Ireland”, the report reads.

At the opposite end is Portugal and Germany, where growth was under ten percent during the same period.

As a result, Portugal did not endure brutal corrections to the cost of housing in the years that followed the highs of 2006 and 2007.


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