The Portugal property market remains a buyer's market, with property prices continuing to fall across the country last month, according to the latest RICS/ Ci Portuguese Housing Market Survey (PMHS).
Portugal property prices fell at the same pace as during the previous two months because demand is weak and confidence is fragile.
The outlook for prices moving forward looks negative, largely because the country's economy remains slow.
At a regional level, there was far more convergence in price trends during February than in January. Previously there was a sharp difference between the price trends in Lisbon and Porto on the one hand and the Algarve on the other hand. This survey round, however, there is hardly any difference in regional price trends.
Other notable regional differences relate to vendor instructions; these continue to fall in Lisbon and are now falling in the Algarve, but in Porto they picked up in February. This partly explains why short term price expectations in Porto are the weakest in the survey.
RICS/Ci Portuguese Housing Market Survey CI Spokesman Ricardo Guimaraes says: “The main concerns of Portuguese real estate agents and developers relate to the financial constraints felt in the market, but these concerns are being amplified by higher unemployment and political uncertainty. On the other hand, some expect a boost from tourism due to the political changes taking place in competitor countries in the Maghreb.”
RICS Senior Economist Josh Miller says: “The Portuguese housing market can be characterised by falling prices, falling activity levels and negative confidence. Interestingly, the RICS/ Ci February data shows that at the national level, price falls are being driven by falling demand, with the flow of property coming onto the market actually slipping. Weak housing demand is hardly surprising given the news flow; inflation is rising, the economy is contracting again and the unemployment rate is the highest on record.”
To read our guide on buying in Portugal, click here.