Sales in Portugal are strong and prices are set to rise by an average of 5% in the next 5 years. They have increased across the entire country, mostly in Lisbon, Porto and the Algarve. The demand from buyers has been increasing, according to the latest index data.
Estate agents in the country have reported a high increase in new buyer enquiries in February this year with sales rising at the quickest rate since September 2015.
The rate of sales growth has seriously improved in each of the three index reports and going forward agents are expecting sales to continue to grow even more over the next three months.
The report also highlights that house prices are expected to go up by 5% every year, over the next five years.
Regional breakdown continues to steer towards Lisbon. However, over the next 12, respondents are now most confident in seeing further price growth across the Algarve, with a net balance of 74% more contributors anticipating higher prices in a year’s time
New sales instructions rose marginally for the second consecutive period, although this modest increase was once again outpaced by demand and the report suggest that these conditions continue to place significant upward pressure on house prices.
The regional breakdown continues to point to the sharpest gains in Lisbon.
In the lettings market, a constant lack of landlord instructions remains a dominant factor pushing rents higher and the shortage of landlord instructions shows no sign of subsiding.
Rents are increasing at a steady pace and this trend is set to be the same over the next few months.
Over the past 12 months, Portugal’s labour market has seen a sustained recovery. Employment levels have been rising by almost 2.5% which is fantastic news for the economy.
Better employment, along with the broader improvement across the economy more generally, is providing dedicated support to continued growth in the real estate market.
Written by Gemma Smith