This follows a similarly small rise of 0.5% in April, as reported by Confidencial Imobiliário through their Residential Price Index, which tracks the fluctuation of property values in Portugal.

Over the past two months, there has been a noticeable stabilisation in prices, which is a change from the previous trend of accelerating price growth that has seen since January. During the early months of this year, price variations surged, surpassing the values observed in the second half of 2022, and reaching a peak of 2.1% in March.

As a result of this recent trend, the year-on-year appreciation of house prices has begun to slow. Although prices in May remained 14.1% higher than those seen during the same month in 2022, this figure represents a decline of around three percentage points from the record 17.0% year-on-year growth 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 suggest that the housing market in Portugal is entering a period of stability, with prices experiencing a deceleration in their upward trajectory. While house prices are still higher compared to last year, the rate of growth has tempered in recent months.