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

Wed
Apr 23rd
Lost Password? Register
Home arrow News arrow Europe arrow Portuguese residential property market still weak, new survey shows

Portuguese residential property market still weak, new survey shows

Monday, 26 March 2012

Image

The residential property market continued to be weak in Portugal in February in terms of both sales and prices with all sectors experiencing falling demand.

But the lettings market is stronger, according to the latest house market survey from the Royal Institution of Chartered Surveyors and Confidencial Imobiliário.

It shows that the national price balance remained broadly unchanged, moving from -63 to -64, indicating 64% more respondents experienced price falls rather than rises.

House price declines continue to be driven by falling demand. Rising supply is not presently an issue, with new vendor instructions falling consistently since December 2010.

Meanwhile, the national confidence index, which is a composite index based on price and sales expectations, deteriorated further into negative territory from -44 to -53, a nine point drop.
 
The lettings market, however, continues to benefit from the fallout in the sales market, as households who cannot access mortgage finance are opting to rent instead. Indeed, the survey shows that tenant demand and lettings expectations continue to rise.

However, rents are falling and rental expectations are negative. This could reflect an excess of rental stock in the market but there is also anecdotal evidence of a mismatch between the type of stock offered to let and that in demand.
 
The regional data tends to be more volatile than the national data, but in February, respondents reported roughly similar price falls across all the regions covered by the survey.

‘Although sales volumes continue to fall, activity in the lettings market is rising as households who cannot access mortgage finance are opting to rent instead,’ said RICS senior economist, Josh Miller.
 
‘However, with unemployment high and rising, it now stands at 14.8% compared to 12.4% a year ago, it remains to be seen how much

further this shift in tenure preference can run. There comes a point, given rising credit constraints and joblessness, where effective housing demand hits an upper limit,’ he added.

CI Spokesman, Ricardo Guimaraes said that survey respondents are increasingly highlighting the unemployment situation, not only because it is rising, but also because of its high level. ‘This is beginning to have an impact on both the sales and lettings sectors, with demand falling in both cases. Rising joblessness precludes getting a mortgage on the one hand, and limits what a household can afford pay in rent on the other hand,’ he explained.

This story relates to: Algarve  Property  RICS  portugal  property prices  rental prices  [SEE ALL]


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

Regional office take up in the UK set for strong growth in 2014Regional office take up in the UK set for strong growth in 2014Office take up across the UK regions is expected to be 13% above the 10 year average this year with demand having increased across all of the key markets, according to a new analysis report.



West Tower

West Tower

Car park

home rental guide

West Tower

John Charles

Buy-to-let

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

The year ahead: What does 2014 hold for the housing market?

After property growth throughout 2013, much of the same is expected in the coming year, according to a new report from Select Property

Finance Update

Buy to let lifetime tracker products launched

Specialist buy to let mortgage lender, Paragon Mortgages, has launched a range of lifetime tracker products along with refreshing the rest of its range of fixed and tracker buy to let mortgages.

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)