Portuguese Property Market Shows Signs Of Picking Up
News Posted On: 30 August 2011
The latest data from the Royal Institution of Chartered Surveyors shows some improvement in activity and sentiment in the Portuguese property market, but reports that continued weak demand is still putting downward pressure on prices.
In the latest release of its Portuguese Housing Market Survey RICS reports an 11 points improvement in the National Confidence index, and a 16 points improvement in the National Activity index, although both are still in negative territory.
The depression in the market is hardly surprising, double-digit employment and general uncertainty over the economy mean that pretty much no one is considering a house-move, leaving foreigners as responsible for much of the demand -- and with Europe still on a debt-toboggan to nowhere there isn't much of that either. This is reflected in the fact that estate agents are reporting bigger price falls according to RICS than developers are.
There are also regional variations, with prices falls slowing in the Algarve, but accelerating in Porto and Lisbon, this could also be taken as evidence the foreigners are dominant in terms of demand.
One promising thing for Portugal is that there is no evidence of over-supply as is being seen in Spain and the US, according to RICS. This means that when the market does start to recover, that it will likely be a sustainable recovery. However, the Portuguese property market has always been stable, and this was always on the cards, the hard part will be finding the start of a recovery.
As is being seen in many places, the rental market is also a sign of hope in Portugal, as families unable to buy are forced into renting.
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Article written by Liam Bailey
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