Portugal remains a great place to snap up bargain property as new figures show that the prices in the country are continuing to fall. The latest figures from the Royal Institution of Chartered Surveyors/Ci Portuguese Housing Market Survey show that poor demand in the country is continuing to push down house prices.
Falls in prices of property in Portugal
The May figures showed that Portuguese developers reported a steep decline in prices, matching the figures reported by estate agents. The National Confidence and National Activity indices both fell by seven points to -60 and -39 respectively.
Whilst prices are falling across Portugal, there are some significant regional variations. The countryââ¬â¢s capital, Lisbon, is seeing significant falling prices whilst Porto is actually seeing a rise in new instructions, despite softer values.
However, the Algarve saw price falls actually slow with falls in new buyer enquiries and agreed sales also decelerating.
Commenting on the report, RICS senior economist, Josh Miller said: ââ¬ÅThe Portuguese housing market can be characterised by falling prices, falling activity and depressed confidence. The main factor weighing on prices is weakening demand. Rising supply is not really an issue.
ââ¬ÅAlthough the national picture looks quite bleak, the survey results highlight some promising regional developments during May with both new enquiries and agreed sales in Porto and the Algarve falling at a slower pace than in April.ââ¬Â
CI Spokesman, Ricardo Guimaraes believes that enquiries in the Algarve have already started to pick up as summer approaches. He said: ââ¬ÅThis, naturally, impacts on local price expectations. By contrast, in the Lisbon and Porto regions, some survey respondents highlighted the fact that banks are tightening credit constraints and, at the same time, selling distressed properties in the market.
ââ¬ÅSuch actions appear to be exacerbating downward pressure on prices in an already weak market.ââ¬Â
Find buy or sell luxury property in Portugal
