Sales of Portuguese property continue to climb, as steady demand fuels the market’s recovery.
The October 2015 RICS/Ci PHMS results show steady demand continuing to translate into improved sales volumes, although the outlook for prices varies in different parts of the country.
Sales volumes picked up during October and have now reportedly increased in every month since the early part of 2014. Looking ahead, sales expectations suggest growth in transactions will continue in the near term.
The steady improvement in market activity continues to support overall house prices. Indeed, the gentle recovery has now been sustained through eleven consecutive reports. That said, three month price expectations do vary between regions, with the indicator for Porto turning slightly negative in the latest results. Nevertheless, over the next twelve months, respondents to the survey are projecting prices to increase by around 2 per cent.
The national confidence indicator also delivered another positive reading, one slightly lower than in September, but still continuing a positive streak that stretches back to October 2013.
On the ground, agents are equally positive about the state of the market. Chris White, Founding Director of boutique estate agency Ideal Homes Portugal, comments: “Sales have increased hugely this year and we’ve seen a significant shift in buyer profile as increasing numbers of investors realise the potential of the Portuguese real estate sector.”
Indeed, in 2014, Ideal Homes Portugal sold a total of €14 million worth of property. In the first nine months of 2015, sales have already topped €25 million, an increase of 79 per cent. Over the same period, the total number of properties sold by the company has increased by 69 per cent.
In 2014, 90 per cent of those buying property in Portugal through Ideal Homes Portugal were looking for a holiday home. Now, just 40 per cent are after second home, while 50 per cent are after an investment property (with the remaining 10 per cent of buyers looking to relocate).
RICS Chief Economist, Simon Rubinsohn: “The economic recovery stalled in Q3 2015, bringing to an end a run of five consecutive quarters of growth. Bevertheless, this setback should prove temporary. Indeed, consumer confidence remains at a post-crisis high, unemployment is falling and the cost of credit
continues to ease.”