Portuguese house prices up 10 months in a row

Photo:   Chris Yunker

Portuguese house prices have now risen 10 months in a row, as the market continues to recover at an increasingly fast rate.

Demand increased at the quickest pace in six months during September 2015, according to the latest RICS/Ci market report, which means that the demand has consistently increased every month since July 2013.

This steady improvement in conditions has driven house prices at an equally reliable rate: house prices have now increased for 10 consecutive months, following almost four years of persistent decline – and growth is expected to stay in positive territory across all regions of the country in the next 12 months.

Ricardo Guimarães, Director of Ci: “The real estate market recovery is strengthening and this is clearly a result of the improved sentiment reported by agents. Bank lending is increasing, demand is rising and confidence is being reinforced. Nevertheless, some agents still mention that this is a fragile
balance, due to unemployment and uncertainty, while market sentiment still varies across locations.”

RICS Chief Economist, Simon Rubinsohn, comments: “The ongoing improvement in market activity is gathering steam. This is being driven by consumer confidence
toward making major purchases reaching a post-crisis high as the economic backdrop continues to brighten.”