LISBON: Residential property prices in Portugal are recovering, getting closer to their pre economic crisis level, according to the latest real estate index, with demand and sales growing.
The data also shows that each region covered by the survey, Lisbon, Porto and the Algarve, has seen new instructions decline consistently in recent reports. However, the lack of new instructions does not appear to be holding back activity too much at this point in time.
When broken down, respondents in Lisbon and Porto reported solid growth, although a slightly negative trend was returned in the Algarve.
Looking ahead, near term sales expectations improved in the latest results, posting the strongest reading since March 2017, with all areas anticipated to see an increase in sales volumes.
In the lettings market, tenant demand rose once more, while the flow of landlord instructions coming to market deteriorated further. Consequently, rents continue to be squeezed higher, and this trend is expected to persist over the coming months.
Over the same period, the number of new lease agreements being taken out is anticipated to see little change.
This is starting to cause concern for real estate agents, who mention the difficulty in finding houses for sale at prices compatible with domestic and traditional demand,’ he added.
Simon Rubinsohn, RICS chief economist, pointed out that the Portuguese economy recorded another solid rate of expansion during the final quarter of last year, with growth coming in at 0.7%.
