The latest figures for the
Portuguese property market show that prices and sales continue to fall across
the country. The March 2012 price
index from the Royal Institution of Chartered Surveyors and Confidencial
Imobiliário show that the property market continues to struggle in Portugal,
mainly due to limited demand from both domestic and overseas buyers.
Falling demand hurting Portuguese property market
The most recent RICS survey shows
a continuing negative outlook for the Portugal property market. Property
Wire reports that ââ¬Ëthe results highlight the continued, broad based
weakness of the sales markets in terms of prices, activity and expectations in
contrast to the partial strength of the lettings sector.ââ¬â¢
The national confidence index,
which is a composite index based on price and sales expectations, improved
slightly from -53 to -48, but it remains negative. Falling demand is the main factor contributing to the
struggling market but new vendor instructions have also fallen since December
2010.
Confidencial Imobiliário
spokesperson Ricardo Guimaraes said: ââ¬ÅAlmost all comments from agents mention
the critical impact that financial institutions are having on the market at
present.
ââ¬ÅNot only are credit restrictions
limiting transaction volumes; banks are also aggressively trying to run down
their distressed property inventory, which is being cited as an additional
source of downward pressure on residential prices.ââ¬Â
The result of falling demand for
property has actually helped the rental market, which is great news for
overseas buyers looking to let out their Portuguese homes.
Nick Marr, director of Homes Go Fast, said: ââ¬ÅWith many households not being able
to access mortgage finance, demand from tenants in Portugal is continuing to
rise.
ââ¬ÅThe lettings market in the
country remains strong which bodes well for any British buyer looking to buy an
investment property in Portugal.ââ¬Â
