According to a report by ECO, since 2010, rents have risen by around 25%, while house prices have increased by 65% in Portugal. In both cases, the country recorded rises above the European average during this period, according to data released by Eurostat, which provides a portrait of housing costs over the last decade.
In the European Union, houses appreciated by 42% from 2010 to the end of 2021, when rents increased by 16%.
Portugal is far from the biggest rises among the member states, both in rents and in house prices.
Most expensive
For example, in countries such as Estonia, Hungary, Luxembourg, Latvia, the Czech Republic, Austria and Lithuania, house prices more than doubled in this period. In the case of Estonia and Lithuania, they have also seen increases of more than 100% in rents since 2010.
While the data leaves no doubt that housing costs are globally higher in Europe, for both renters and homebuyers, there are countries where the trend has diverged.
Lower prices
In Cyprus and Greece, rents and house prices have fallen over the past decade. Especially in Greece, where the drops exceed 20%.
In Italy, if rents have risen by 10%, houses are 11% cheaper than in 2010.
The inescapable conclusion is that rents have failed to keep pace with house prices across Europe, meaning that rental yields for property investors have fallen. This is something that the critics, who complain that rents have gone up too much and that we are in the midst of a housing crisis, will have to confront and acknowledge.
By Billy Bissett from Porto on 13 Apr 2022, 07:50