portuguese rental market booming
News Posted On: 30 December 2011
The Royal Institute of Chartered Surveyors has just issued its latest report on the Portuguese property market, showing that, while the property market is still floundering on the sales side, that the rental market is booming.
The report opens with:
The October RICS/Ci Portuguese Housing Market Survey (PHMS) shows a further deterioration in demand, supply confidence and prices. The National Confidence index fell from -53 to -60 and the National Price balance improved marginally from -65 to -64, but remains deeply negative.
It goes on to say that the falls are being caused by falling demand, as supply is also falling and so is not a factor in the decline.
Like we are seeing in several other markets, including the UK and the US, a rental boom is being born out of this poor performance in the sales market.
With so much uncertainty and so little liquidity in the mortgage market, people are either unable or unwilling to buy, which is leading to rapidly increasing rental demand. The report says:
"At the national level, demand for rented property and new lettings instructions both increased sharply, though rents declined. Respondents expect further falls in rents but continued strong rises in lettings volumes. At the regional level, house prices and rents are falling across Lisbon, Porto and the Algarve, but the sharpest falls are being recorded in the latter. However, rental transactions are also expected to increase fastest in the Algarve."
View Portugal property for sale
Written by Les Calvert+
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