Hi! One more infographic is here! Have you ever heard of the Price Index? Below we’ll not only tell what it is but also show its dynamics in the Portuguese housing market from 2009.
In 2015 the authorities made this index 100 points, and not paying attention to the price itself, let’s have a look at what this diagram can show us.
Well, first of all, it’s becoming clear to us that prices have been rising steadily since about 2012. And if, before 2015, the price of new and existing housing were on par, then starting from that time, the appetite of sellers in the secondary market began to grow much faster than the appetite of developers.
What conclusion can we draw from this? It is possible that there are a large number of players on the secondary market who are willing to wait to sell “for their price.” They are taking their time and pushing prices up and, by all appearances, can afford it.
Second, the realization that the secondary market is up almost 100% and the new development market gained respectively 60% in 7 years brings us to understand that it is better to buy a newly developed house or an apartment than buy from the secondary market.