Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

Investment in the office real estate sector in Portugal have decreased in recent years, as the sector continues to suffer the effects of the coronavirus pandemic on demand for office space. In 2022, the value of office real estate investment fell below *** million euros. That was the lowest figure recorded in the past five years and almost half of the investment value recorded in 2019. Despite the declining transaction value, offices were the third most popular asset class among investors in 2024. In that year, over *** million euros were invested in office real estate.

Portugal Median Real Estate Value: Bank Assessment data was reported at 1,483.000 EUR/sq m in Mar 2023. This records an increase from the previous number of 1,478.000 EUR/sq m for Feb 2023. Portugal Median Real Estate Value: Bank Assessment data is updated monthly, averaging 868.000 EUR/sq m from Jan 2011 (Median) to Mar 2023, with 147 observations. The data reached an all-time high of 1,485.000 EUR/sq m in Jan 2023 and a record low of 736.000 EUR/sq m in Apr 2014. Portugal Median Real Estate Value: Bank Assessment data remains active status in CEIC and is reported by Statistics Portugal. The data is categorized under Global Database’s Portugal – Table PT.EB001: Median Real Estate Value. [COVID-19-IMPACT]