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

Sat
Sep 20th
Lost Password? Register
Home arrow News arrow Europe arrow Portuguese property market got worse in August, latest index shows

Portuguese property market got worse in August, latest index shows

Monday, 26 September 2011

Image

The residential property market in Portugal has deteriorated in the last month although the Algarve region is experiencing better market conditions that the rest of the country, according to the latest real estate index published today (Monday Sepember 26).

The August Royal Institution of Chartered Surveyors/Ci Portuguese Housing Market Survey shows that that both the national activity and national confidence indices deteriorated.

Real estate agents are experiencing much sharper price declines than developers, especially in Lisbon and Porto.

The national activity and national confidence indices fell by eight and two points respectively to -33 and -51, while the national price balance fell from -55 to -59.

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.

 The survey results also highlight that residential agents continue to experience much sharper price falls than developers. Moreover, this trend is not only apparent at the national level, but is also clearly evident in each of the three regions covered by the survey, Lisbon, Porto and the Algarve.
 
However, the national picture masks some interesting regional variation, with market conditions in the Algarve holding up relatively well compared to Lisbon and Porto. Indeed, while prices and sales levels continue to fall across all regions, the pace of decline moderated in the Algarve but accelerated elsewhere.

Also, while price and sales expectations remain negative in all regions, they are least so in the Algarve.

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

‘Unlike in Spain and Ireland, oversupply 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. Consequently, once the economy starts to recover, Portugal will not have to cope with the residential inventory issue that other countries face,’ he added.

Survey respondents view higher taxes as another factor constraining housing transaction levels, on top of already elevated financial and credit restrictions, according to CI spokesman, Ricardo Guimaraes.

‘However, on the plus side, respondents note there opportunities in the residential market, particularly in the rental sector, for those purchasers with equity,’ 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 industry says Scotland No vote will bring renewed enthusiasmProperty industry says Scotland No vote will bring renewed enthusiasmScotland’s property market is likely to see renewed enthusiasm and a rise in prices in sales after the historic referendum vote which saw independence rejected.



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

Estate and lettings agents UK advert campaign launched

The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) have launched a new regional TV campaign to raise awareness among consumers of the importance of using an NAEA or ARLA licensed agent.

Finance Update

Skipton announces new buy to let fixed rates

The Skipton Building Society has launched a new range of buy to let seven year and five year fixed rate products.

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)