Housing and Setting Constraints: The Portuguese Evidence

Abstract

In the last few decades, Portugal has witnessed an extraordinary quantitative and qualitative transformation in housing provision. The pace of housing construction was so extensive that the contemporary real estate market is currently characterized by an excessive supply, vis-à-vis the resident population. In this study, we discuss the impact of the financial process on the housing sector in comparison with tenancy. We consider transaction prices of the housing assignments, either through acquisition or through tenancy. The recent shock resulting from the pandemic situation did not slow down house prices but caused a slight drop in rents. The model used proposes to analyze the fluctuations in prices and rents in the face of external shocks. In the residential market, the estimation is complex due to the many heterogeneous attributes of residential assets. Non-fluctuating variables, such as size, location, and external demand for homes, explain a large part of the variation in price levels included in the model.

Energy and Circular Economy: Nexus beyond Concepts

“…This process allowed for the simultaneous quantification of categorical variables while controlling the data's dimensionality. By reducing the dimensions, the analysis becomes more straightforward and the variables can be interpreted as some uncorrelated components rather than the numerous, loosely related variables found in the original dataset [30]. A standard principal component analysis typically assumes linear relationships between numerical variables.…”