Portugal property prices continued to fall last month as the country's dismal economy impacts negatively on consumer confidence and demand for homes in Portugal.
The latest monthly Portuguese Housing Market Survey from the Royal Institute of Chartered Surveyors and Confidencial Imobiliário (Ci) reveals that prices dropped across Portugal, including Lisbon, Porto and the Algarve.
The national activity index fell two points to -26, but the national confidence index declined 22 points to -51.
The greatest fall in property prices was recorded in the capital city of Lisbon, while the decline in the Algarve was marginal.
“Survey respondents note that the deteriorating economic outlook and heightened political tensions are the main factors weighing down on activity and sentiment,' said Ci Spokesman, Ricardo Guimaraes.
He added: “Lack of mortgage credit is an additional factor that is restricting activity levels, but for those who are still able to purchase, some respondents noted that values look compelling.”
Josh Miller, RICS senior economist, said: “The Portuguese housing market can be characterised by falling prices, falling activity levels and deteriorating confidence. This is set against a backdrop of rising inflation, elevated unemployment and a shrinking economy.
“Declines in prices are being driven by weakening demand; rising supply is not presently an issue. There is not much divergence at the regional level; Lisbon, Porto and the Algarve are all experiencing price declines.”
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