In an interview with Lusa, the director of the International Monetary Fund (IMF) for Europe, Alfred Kammer, considered that Portugal has recorded significant increases in house prices in recent years, but pointed out that this is a scenario that extends to other economies.

“House prices [in Portugal] have increased, from 2015 levels until now, by 111%, against 42% in the euro zone. It’s a much bigger increase,” he said.

Alfred Kammer highlighted that there is a slowdown in housing prices on average in single currency countries, but this is not yet the case in Portugal.

“In Portugal, residential prices still continue to increase”, he pointed out, adding that, however, the IMF is not concerned about the impact of these increases on “financial stability”.

For the head of the IMF, this increase results from “a shortage of supply”, so the institution does not expect “a sudden correction in residential housing prices”.

“This is a big issue not only in Portugal, but in several European countries. It is a question of housing affordability and therefore what is needed is to create the regulatory space and increase supply. What the Government is also doing is having public investment to create social housing”, he pointed out.

For Alfred Kammer, “these are two good political responses and should be pursued”.