Cookies on the this website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to PropertyWire?

Welcome, and thank you for visiting our website.

PropertyWire is the leading publication for property investors and industry professionals interested in the world of international property investment.

Our aim is to give you intelligent commentary and analysis on the world of retail and commercial real estate.
If you've enjoyed what you've read so far why not sign up for our FREE property alert and online magazine PropertyWire Confidential.

Every week the PropertyWire team sends out a hard-hitting newsletter packed with news and analysis of the top stories plus the best investment opportunities on the market. We always look at the bigger picture like the Euro Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Thu
Aug 21st
Lost Password? Register
Home arrow News arrow Europe arrow Poor economic outlook affecting property market in Portugal

Poor economic outlook affecting property market in Portugal

Monday, 24 October 2011

Image

A weak economy and lack of lending is continuing to depress the residential property market in Portugal, according to the September RICS/Ci housing market survey published today (Monday 24 October).

The National Activity index has turned slightly less negative, but the National Confidence index edged lower last month, according to the report from the Royal Institution of Chartered Surveyors and Confidencial Imobiliário.

Demand rather than supply is the main factor weighing down on prices and activity in the Algarve is not quite as negative compared to Lisbon and Porto, it also shows.

The National Activity index edged up from -33 to -27, while the National Confidence index edged down from -51 to -53. The national price balance fell further from -59 to -65, the lowest reading since May.

At the national level, the latest results show that price declines continue to be driven principally by falling demand. Indeed, rising supply is not presently an issue, with new vendor instructions falling consistently this year.

However, beneath the national reading, new instructions did rise sharply in the Algarve. The survey has generally been showing that developers are experiencing relatively softer price falls than sales agents.

This month, however, developers reported that prices declined at a much faster rate, roughly matching that of agents. This had also taken place in May, but was quickly reversed the following month.

Whether this is again a temporary blip, or the beginning of something more permanent whereby developers are now less resistant to price falls remains an open question at this
Stage, the report says.

It also points out that the national picture masks some interesting regional variation, with activity in the Algarve not quite as negative compared to Lisbon and Porto.

‘It is demand side of the equation that is weighing down on prices in Portugal, with the double digit unemployment rate feeding through to weakness in new buyer enquiries,’ said RICS senior economist, Josh Miller.

‘Oversupply, unlike in Ireland or Spain, is not an issue. The official statistics show no evidence of overbuilding prior to the economic downturn and new vendor instructions have been falling all year. As a result, once the economy starts to recover, Portugal will not have to cope with the residential inventory issue faced by other countries,’ he added.

CI Spokesman, Ricardo Guimaraes pointed out that survey respondents continue to highlight the negative economic backdrop and credit availability as factors that are dragging on activity. ‘Respondents are also beginning to see an increase in auctions of repossessed properties by banks, which is putting additional downward pressure on prices,’ he added.

 


BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!Del.icio.us!Google!Live!Facebook!StumbleUpon!Newsvine!Furl!Yahoo!

 
More Recent News
Earlier News
To see all the latest news articles in our monthly online magazine, Property Wire Confidential, sign up free here



Europe: Top Headline

Property sales up in Spain, but prices are still falling, latest data showsProperty sales up in Spain, but prices are still falling, latest data showsHome sales in Spain are increasing but price are continuing to fall with the latest data from the Notaires showing transactions up 16% compared to a year ago.



West Tower

West Tower

Car park

West Tower

home rental guide

Limousin Guide

Barratt Homes

Limousin Guide

West Tower

Search for Properties:

Feature story

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Company news

Pre-nuptial Agreements Increasing In the UK

http://www.buffalogov.org/files/Images/wedding.JPGA pre-nup is often a subject of much mirth in the UK; a dinner party debate about the merits of pragmatism versus idealism. Considering what you might do in the event of a divorce with regards to your estate is of course very pragmatic, but the partner calling for the agreement has often been depicted as a tad mercenary.

Finance Update

Barclays trims mortgage rates to attract more first time buyers

Barclays has launched new and reduced mortgage rates which it says will support first time buyers and those customers with a smaller deposit.

Features

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Newsletter

Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>

Subscribe to our Europe property and real estate news feed (RSS)