Abstract:

The country's economic situation affects people's access to housing, which is an important factor for their well-being. Considering the high growth of tourism activity, this study analyzes how tourism have been an impact on house prices. In addition to verifying data on construction and bank financing, an analysis of the impact of tourism in Portugal was carried out on a quarterly sample from 1998 to 2019. Using the Engle-Granger cointegration methodology, we find a positive long run relationship existence between house prices and inflation rate, housing permits, construction cost, loans and tourism, while unemployment rate has a negative impact on house prices.