Portugal’s housing market is a ticking time bomb with many homeowners struggling to pay back their mortgage and a shortage of new homes available for sale.
The country’s real estate market is also facing a shortage for new homes as the government has slashed the size of its property tax base by more than 60% since 2008, making Portugal the largest exporter of new housing in Europe.
Portugal is a country of 11 million people with only 2.6 million homes built, according to a 2015 World Bank report.
The real estate bubble is seen in Lisbon, Portugal, August 31, 2019.
Portugal’s real-estate bubble is widely seen as the biggest in Europe as it has been the country where the biggest percentage of the countrys new homes are being built.
The property bubble burst in 2013 and the country was forced to seek refuge from the global financial crisis.
The government has been struggling to manage the market with limited options to sell off its properties.
This has left the Portuguese government facing a property shortage as home prices in the country have skyrocketed and demand for new properties is soaring.
According to a recent report by IBES, Portugal is the most unaffordable country in Europe, as the average house price is already 10% higher than its pre-crisis peak.
The report estimated that the average cost of owning a property in Portugal is currently $1,700 per month, which is the highest in the European Union and far above the average annual cost of living in the United States.
In some cases, the average price of a home in Portugal has risen by up to 60% in the last two years.
Some Portuguese cities have seen double-digit price hikes in the past few years as a result of the housing bubble.
The cost of housing in Portugal rose by more for each person that moved to a new city in 2017, compared to the same period last year, according the IBES report.
A lack of new houses for sale and a lack of foreign buyers has left Portugal with a shortage in new housing as well.
The shortage has resulted in a spike in the number of new listings for properties in the capital, Lisbon, which has more than doubled in the first three months of 2018.
Many Portuguese cities, such as Lisbon, have seen an influx of foreign investors buying properties in recent years.
The number of foreign tourists in Portugal increased by almost 500% from 2017 to 2018, according IBES.
In May, IBES reported that the country has the highest number of foreigners in Portugal, which was a record high.
The increase in foreigners has caused a shortage on the Portuguese real estate industry, as they are trying to buy homes.
According the IBPS report, foreign buyers accounted for 15.6% of the total new-home sales in the third quarter of 2018, compared with 2.7% in 2018.
However, the problem with foreign buyers is that many Portuguese homes are unaffordable.
According a 2017 report by the National Bank of Portugal, in 2017 Portugal was the country with the largest number of houses for rent for the average home price of €1,543 per month.
The average house in Lisbon is currently €1.1 million.