The housing market in mainland Portugal is indicating signs of stabilisation, with a modest increase in sales prices observed in May. According to Confidencial Imobiliário's Residential Price

Index, there was a monthly growth of 0.6% during that month, following a similar rise of 0.5% in April.

This marks a shift from the previous trend of accelerating price growth that had been seen since January. In the early months of this year, price variations surged, surpassing values observed in the second half of 2022 and reaching a peak of 2.1% in March.

However, recent data suggests that the year-on-year appreciation of house prices has started to slow down. Although prices in May were still 14.1% higher compared to the same month in 2022, this represents a decrease of approximately three percentage points from the record growth of 17.0% observed between January and March. April already showed a slowdown in the rate of price growth, with a year-on-year increase of 16.3%.

These findings indicate that the housing market in Portugal is entering a period of stability, with prices experiencing a deceleration in their upward trajectory. While house prices remain higher compared to last year, the pace of growth has tempered in recent months.