{"id":608864,"date":"2026-05-28T17:46:17","date_gmt":"2026-05-28T17:46:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/608864\/"},"modified":"2026-05-28T17:46:17","modified_gmt":"2026-05-28T17:46:17","slug":"bank-of-portugal-warns-of-abrupt-and-unexpected-reduction-in-house-prices-portugal-resident","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/608864\/","title":{"rendered":"Bank of Portugal warns of \u201cabrupt and unexpected reduction in house prices\u201d \u2013 Portugal Resident"},"content":{"rendered":"<p>Portugal\u2019s central bank has issued its latest<a href=\"https:\/\/www.bportugal.pt\/page\/relatorio-de-estabilidade-financeira-de-maio-de-2026\" rel=\"nofollow noopener\" target=\"_blank\"> \u2018financial stability report\u2019<\/a>, in which it outlines perceived emerging risks, and evaluates their consequences. High up on the list is the acknowledgment that \u201cprices in the real estate market may undergo a correction, with an additional impact in the current context, marked by increased mortgage lending.\u201d<\/p>\n<p>The <a href=\"https:\/\/www.portugalresident.com\/bank-of-portugal-clamps-down-on-mortgage-lending\/\" rel=\"nofollow noopener\" target=\"_blank\">bank has already moved to reduce the amount of money banks were lending<\/a> to people (compared to their salaries), but this is the first time (in recent years) that it has referred to \u201ca risk of an abrupt and unexpected reduction in house prices\u201d.<\/p>\n<p>This event, if it happened, \u201cexacerbated by a scenario of economic slowdown, and correction in international financial markets\u201d would, the bank admits, mainly affect the most vulnerable families \u2013 the ones whose mortgages are already stretching household incomes thin.<\/p>\n<p>The other risks are connected to \u2018geopolitical tensions\u2019, says the bank, the consequences of which could negatively affect economic activity, exacerbate inflation, and the capacity of families and businesses to pay their loans.<\/p>\n<p>None of this is \u2018new\u2019 \u2013 but the warning about house prices does seem to be. Up until now, insiders have been suggesting more a scenario of price \u2018plateauing\u2019 into the future, not of an \u2018abrupt\u2019 or even \u2018unexpected reduction\u2019.<\/p>\n<p>SIC today assesses the report, leading with the fact that foreigners account for almost 30% of all property purchases (and these tend to be at the \u2018higher end\u2019 of the market).<\/p>\n<p>Principal foreign investment comes from Brazil, Angola and France \u2013 and the picture has remained fairly stable since 2019.<\/p>\n<p>Notwithstanding the risks identified (including those of cyber attacks, and due to climate change), the bank appears \u2018comfortable\u2019 with the solidity shown by Portuguese banks, which it says should \u201cmaintain careful risk management\u201d in order to retain resilience.<\/p>\n<p>Source: SIC Not\u00edcias<\/p>\n","protected":false},"excerpt":{"rendered":"Portugal\u2019s central bank has issued its latest \u2018financial stability report\u2019, in which it outlines perceived emerging risks, and&hellip;\n","protected":false},"author":2,"featured_media":608865,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[207306,84,1294,2295,56,54,55],"class_list":["post-608864","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-bank-of-portugal","tag-business","tag-economy","tag-property","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/608864","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=608864"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/608864\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/608865"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=608864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=608864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=608864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}