Housing prices increased by 8.2% and the number of transactions decreased by 18.7% in 2023

In 2023, the Housing Price Index (IPHab) grew 8.2% and 136,499 homes were transacted, for a total of 28 billion euros, 18.7% and 11.9% less in number and value , INE advances today.

According to the National Statistics Institute – INE, by category, prices for existing housing increased by 8.7%, above the rate of change observed for new housing, 6.6%. In the last quarter of 2023, the year-on-year rate of change of IPHab was 7.8%, 0.2 pp more than in the previous quarter. During this period, prices for existing homes increased at a faster rate than for new homes, 8.1% and 6.9%, respectively.

In 2023, the prices of transacted housing maintained a growth trajectory, although there was a slowdown, with the average annual variation rate of the IPHab going from 12.6%, in 2022, to 8.2% . The price increase continued to extend to both categories of housing, being more pronounced in existing housing (8.7%) compared to new housing (6.6%). The difference in the rate of growth in prices for the two categories of accommodation was reduced by more than half last year, from 5.2 pp in 2022 to 2.1 pp in 2023.

Fewer transactions

In 2023 as a whole, 136,499 homes were transacted, for a total of 28 billion euros. These results represent reductions of 18.7% and 11.9%, in number and value, respectively, compared to the year 2022. The reduction was particularly intense in existing housing transactions, which recorded variation rates of -21.4% , in number and -16.5%, in value. In new homes, there was a 6.1% reduction in the number of transactions and a 2.6% increase in value. In the 4th quarter of 2023, 34,126 homes were transacted, corresponding to a year-on-year reduction of 11.4% (variation of -18.9% in the previous quarter) and a chain reduction of 0.4%.

In 2023, housing purchases by buyers with tax domicile in the National Territory decreased by 19.8% compared to 2022, to a total of 126,108 units. This record represents 92.4% of the total number of transactions, the lowest relative weight in the series started in 2019. With regard to transactions by buyers with tax domicile outside the National Territory, 10,391 units were recorded, corresponding to a rate variation of -3.1% compared to 2022. Among transactions relating to buyers with tax domicile outside the National Territory, two different situations were observed compared to the previous year: the European Union category, with a total of 5,025 units , recorded a reduction in the number of sales of 13.5%; Regarding the Other Countries tax residence category, there was an increase of 9.3% in purchases by these buyers, for a total of 5,366 homes.

Value of transacted homes totaled 7.2 billion euros

During this period, the value of transacted homes totaled 7.2 billion euros, 2.6% less than the same period in 2022. In 2023, the institutional Family sector acquired 116,752 homes, for a total of 23.5 thousand million euros, which represents an annual reduction of 19.8% in number and 13.8% in value. Acquisitions of accommodation by buyers with tax domicile outside the National Territory in 2023 decreased by 3.1% in number and 1.4% in value, with 10,391 homes being transacted, for a total of 3.6 billion of euros.

In 2023, 39,715 homes were transacted in the North region, 29.1% of the total, 0.9 pp more than in 2022. The Center, West and Tagus Valley and Alentejo were the other regions that recorded an increase, compared to 2022, in the respective relative shares, respectively, 1.2 pp, 0.1 pp and 0.1 pp.

Greater Lisbon, with a total of 9.1 billion euros, concentrated 32.3% of the value of accommodation transactions carried out in 2023. For the first time, in the last six years, this region recorded a year-on-year increase in its relative weight (+0.3pp).