LOOKING INTO 2019 – PORTUGUESE HOUSING MARKEt
Demand continues to outstrip supply within the Portuguese housing market, driving strong price growth within the sector.
As we begin 2019, the Portuguese property market remains buoyant, building on the success of 2018 and helping to fuel predictions of a record breaking year in 2019.
The latest RICS/Ci PHMS report has shown that a strong rental market within the country is helping to boost property prices, while new buyer enquiries remain broadly unchanged as we begin the year.
The report found that enquiries were reportedly flat in all three regions covered in the survey (Porto, Lisbon and the Algarve). Likewise, the agreed sales net balance indicator pointed to no change in transactions at the national level, although sales did reportedly rise very modestly across Porto and the Algarve.
While the number of enquiries remains stable, there has been a continued decrease in new instructions and this is predicted to continue into 2019. On the back of this, prices are expected to continue to rise firmly at the headline level.
The Algarve looks to be the region with the greatest potential for growth in Portugal with analysts suggesting that we can expect housing prices to rise on average by 3% over the year.
RICS Chief Economist, Simon Rubinsohn said: “Although results suggest momentum has eased somewhat, forward looking metrics are still suggestive a reasonably solid outlook for the market. Indeed, the macro fundamentals remain strong, which should help provide a positive backdrop for housing market activity in the near term”
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