In recent years, about Portugal is increasingly spoken of as a country that, like Greece, may be on the verge of bankruptcy. And what is happening in the property market of this state?
According to a survey on the state of the real estate market of Portugal, published by the Royal Institution of Chartered Surveyors (RICS), the respondents expressed pessimistic on prices and sales volumes in the short term.
According to Josh Miller, chief economist at RICS, growing volumes of deals in the Portuguese real estate market, coupled with the decrease of interest in it quite naturally lead to lower prices. According to the respondents in the near future the situation will not change. Real estate prices will fall throughout Portugal, but in particular will suffer the most southern province of the country - the Algarve.
However, according to Stephen Anderson, chief financial officer of Portuguese investment company Infinito Real, the previous 12 months, developed for the real estate market is not as bad as one might expect. On the threshold of 2010 it was completely unclear what to expect. Among other things, anticipated market downturn, similar to what happened in Spain. Buyers are expected to buy expensive real estate with almost 50% discount, and for Infinito Real first half of this year was not entirely successful.
Some time later it became clear that although some deals actually done at low prices, their share is not so great and the price of many items remained fairly stable. In the second half the situation has changed: increased the number of potential buyers to objectively assess the situation and the level of prices, but they had to face rising interest rates on loans and tightening the conditions for their issuance, reports Property Wire. As a result, demand for property has dropped, followed by price.
Anderson believes that in the coming year the situation has not changed. Real estate prices will remain fairly low, but expect that interest rates increase by about half.