Portugal property prices rise for first time since bailout

Photo: Luis Ascenso

Property prices in Portugal have risen for the first time since the bailout, according to new figures.

The latest housing market survey from the Royal Institution of Chartered Surveyors and Confidencial Imobilario shows that house prices are beginning to recovery, supported by growing confidence.

The increase in property values is only marginal, but marks the first rise since the bailout programme and since the RICS/Ci survey began in 2010. Values rose modestly in Lisbon and the Algarve, while Porto, where prices had previously been falling, saw values stabilise.

That trend is now expected to continue in the coming months, although the report says a genuine recovery will only be confirmed by a “sustained run of positive data”.

Confidence is also climbing, with the survey’s barometer of sentiment hitting a new record high. That improved mood is fuelled by rising buyer demand. Indeed, property sales rose in January 2015 for the 12th month in a row.

In the lettings sector, tenant demand continues to rise gradually and the number of new landlord instructions is diminishing. Rents are still falling for the time being, although respondents do expect a flatter trend to emerge in
the coming months.

RICS Senior Economist Josh Miller welcomes the figures as an “important milestone”.

“Whether this trend can be sustained depends on the broader economic recovery,” Miller comments. “We remain optimistic on this front, but considerable risks remain.”