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.

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

Apr 19th
Lost Password? Register
Home arrow News arrow Europe arrow Portuguese property market still seeing price falls

Portuguese property market still seeing price falls

Thursday, 03 January 2013
Residential property prices and rents in Portugal are continuing to fall due to very weak demand, according to the latest housing market survey from the Royal Institution of Chartered Surveyors and Confidencial Immobiliario.

The index, which covers Lisbon, Porto and the Algarve, highlights the broad based weakness of the property sales markets alongside what appears to be the first signs of a slowdown in the lettings sector.
In the sales market, transactions and prices continued to decline. The national price net balance fell from -60 to -72. That means that 72% more respondents experienced price falls rather than rises.

It says that price declines continue to be driven by falling demand and rising supply is not an issue with new vendor instructions falling since December 2010 and no significant over building taking place in the run up to the crisis.
The report says that it is also noteworthy that residential developers, on the whole, are reporting less severe price declines than sales agents. This suggests the market for new build, whilst still under pressure, is holding up slightly better than for existing stock.
The national confidence index,  which is a composite measure based on price and sales expectations, rose by one point from -54 to -53, but remains fairly negative overall. 

The lettings sector, which until now has benefited from the fallout in the sales market given mortgage lending constraints, showed the first signs of a slowdown in activity.  Indeed, tenant demand fell slightly and new landlord instructions stabilised.

Transaction expectations also fell but they still remain positive but it is not clear if this marks a true reversal in trend or statistical noise is at this stage, but the fact the activity indicators deteriorated in tandem arguably suggests the risks are skewed to the downside. Rents meanwhile continue to fall and rental expectations turned more negative. 

In Portugal, house prices continue to fall due to very weak demand. Demand weakness, in turn, stems from a deteriorating labour market with the unemployment rate now standing at 16.3% and falling mortgage lending,ђ said RICS senior economist, Josh Miller.

Given tight mortgage lending constraints, households had been turning to the rented sector over the last year, although this monthђs results indicate the exodus from the sales market to the lettings sector may be coming to and end, he added.

CI spokesman, Ricardo Guimaraes said that some estate agents are naturally very pessimistic, especially due to banksҒ distressed residential selling activity. But others are taking a more positive view on sales market developments in 2013, on the back of expected improvements in credit conditions,ђ he added.

BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!!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

Moving home costs in UK at highest level since 2007, study showsMoving home costs in UK at highest level since 2007, study shows{mosimage} The average cost of moving home in the UK has risen by 5% to £8,689 in 2014 from £8,258 in 2013, its highest level since 2007, new research shows.

West Tower

Car park

The Foundry

Car park

Barratt Homes

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

Cluttons opens new office in Spain

International real estate services company Cluttons which operates in over 50 countries has opened in Andalucía, Spain, to increase its international presence and bring its residential real estate expertise to the Costa Del Sol.

Finance Update

Leeds Building Society to accept Help to Buy remortgage applications

Leeds Building Society is the first lender in the UK to announce it will accept re-mortgage applications from Help to Buy Equity borrowers.


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.



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)