DBRS predicts house prices will continue to rise in 2025 but at a slower pace

The rating agency DBRS predicts that house prices will continue to rise this year, albeit at a slower pace, supported by factors such as lower interest rates, lack of new construction and demand for foreigners.

According to the DBRS analysis, released today, supporting the housing market will be factors such as the resilience of the economy (although it is not yet known what impact the United States trade policy will have), low unemployment, gradual reduction of interest rates, as well as the imbalance between demand and supply, also related to the lack of new construction and demand for foreigners.

Thus, DBRS anticipates, "the trend of sustained rise in property prices is expected to continue in 2025, although at a slower pace" than in 2024.

For DBRS, this means a "challenge" for those who are buying a house for the first time and about the Government's measures for the housing market, it considers that they are relatively limited as it will take time to know if they have an effect.

As for housing loans granted by banks, after the slowdown in 2023 due to the rise in interest rates, DBRS says that they have been recovering and that it expects them to continue to follow the decision on interest rates.

LUSA/DI