Real Estate & Economic News in Portugal from Propertyshowrooms.com

Falling demand hits Portugal property

Wed, 28 Sep 2011 00:00:00 GMT

Demand for houses in Portugal fell in August, newly-released figures have shown.

The latest Royal Institution of Chartered Surveyors (Rics)/Ci Portuguese Housing Market Survey found that conditions have deteriorated when compared to July.

Both the National Activity and National Confidence indices dropped in the month, by eight and two points respectively to minus 33 and minus 51.

Developers are not being treated as harshly in terms of price falls as residential agents.

Rics senior economist Josh Miller said: "In Portugal, it is the demand side of the equation that is weighing down on prices."

He continued by saying that oversupply is not an issue, unlike in other countries such as Ireland and Spain.

Mr Miller added that once the economy begins to recover Portugal will not have to worry about the "residential inventory issue".

Managing director at Infinito Real Stephen Anderson recently stated that the Portugal residential market is beginning to bounce back, particularly in the Algarve.

Portuguese housing market 'still struggling'

Tue, 30 Aug 2011 00:00:00 GMT

The housing market in Portugal is still in negative territory, despite registering an improvement in July over June, the latest figures from the Royal Institution of Chartered Surveyors (Rics) show.

Indices ranking activity and confidence in the Portuguese residential property sector both saw improvements last month, although prices fell during the same period.

Rics senior economist Josh Miller commented: "It is the demand side of the equation that is weighing down on prices."

He went on to note that this is actually a positive situation for the country, as it will not have to deal with issues of oversupply once its economy recovers and unemployment levels fall - unlike other European nations such as Spain.

According to the Rics Global Distressed Property Monitor published earlier this month, Portugal is among the locations to see investor demand for such assets rise during the second quarter of 2011.

However, the organisation noted that the supply of distressed real estate in the country is expected to increase during the three month period from July to September.

RICS: Portuguese property prices decline

Wed, 27 Jul 2011 00:00:00 GMT

Falling demand on the Portuguese property market has had a negative impact on prices in the sector, according to the latest data published by the Royal Institution of Chartered Surveyors (RICS).

The RICS/Ci Portuguese Housing Market Survey for June revealed that there is some regional variation, with price declines slowing in the Lisbon and Porto districts, while it accelerated in the Algarve.

Senior economist with RICS Josh Miller commented: "With the Portuguese unemployment rate at 12.4 per cent, it is unsurprising that house prices and activity is falling, while confidence remains very depressed."

The outlook is for both sales and prices of real estate in the country to remain in negative territory over the coming months.

But although residential property is not performing well in Portugal, a recent report by CB Richard Ellis indicated that the commercial sector is doing better.

According to the firm, Lisbon saw yields for office space rise by 50 basis points during the second quarter of this year, compared to the first three months.

CBRE real estate report points to growth in Portugal

Fri, 15 Jul 2011 00:00:00 GMT

Returns on investment in commercial property in parts of Portugal have outperformed the sector in other countries in Europe, a new report has shown.

Compiled by CB Richard Ellis (CBRE), the study revealed that yields on property in Lisbon were up by 50 basis points to 7.5 per cent in the second quarter of the year, while revenue from Oporto buildings rose by 25 basis points to nine per cent.

These upward movements for property in Portugal were the largest increases seen in prime rents across Europe over the period and contribute to a continuation of the stability of the market, although gains remain somewhat slowed, the organisation said.

However, Richard Holberton, director of EMEA research at CBRE, added: "In overall terms, the second quarter of 2011 represented a further milestone in the process of gradual value recovery in the European commercial property markets."

According to the Jones Lang LaSalle Office Property Clock, increased rental growth was seen by European real estate investors in the first quarter of 2011, with the index rising by 1.5 per cent.

Prices fall in Portuguese property market

Fri, 24 Jun 2011 00:00:00 GMT

The Portuguese property market saw a drop in house prices during May, according to new figures.

Statistics from the Portuguese Housing Market Survey by the Royal Institution of Chartered Surveyors (RICS) and Confidencial Imobiliario show that prices started to fall at a faster rate in May compared with previous months, mainly thanks to a drop in demand.

The decreases were particularly large in areas such as Porto and Lisbon, although the Algarve region saw a slowing in the rate at which property values fell along with a stable number of new instructions.

"Although the national picture looks quite bleak, the survey results highlight some promising regional developments during May, with both new enquiries and agreed sales in Porto and the Algarve falling at a slower pace than in April," explained Josh Miller, senior economist at the RICS.

Overall, the composite National Activity index saw a drop to -39, while the National Confidence indicator also fell to -60.

Mr Miller noted in April's report that a decrease in activity, prices and confidence helped characterise the Portuguese property market during that month, along with high levels of unemployment and increasing inflation.

Property prices to fall in Portugal

Fri, 10 Jun 2011 00:00:00 GMT

Foreign exchange specialist Caxton FX has claimed that property in Portugal is soon to become an "investment goldmine".

The firm noted that as the Social Democrats prepare to lead a new coalition government, the country will become more appealing to potential investors, especially Brits looking to make an overseas property purchase.

Caxton FX explained that the party will act swiftly to enact an austerity and reform programme demanded in return for its £70 billion international bailout.

Once the new government is in place the initiative is likely to go through, potentially bringing down residential property prices across Portugal, A Place in the Sun reports.

Rupert Lee-Browne, chief executive officer of Caxton FX, commented: "If the Socialist Party manage to push through the austerity measures discussed, then property prices will come down across Portugal.

"It will become a far more tempting place for overseas investors. I expect to see a rash of Portuguese property purchases from Brits over the coming year or so."

Portuguese property market remains depressed

Mon, 30 May 2011 00:00:00 GMT

Real estate prices, activity and confidence have all taken a hit as a result of the economic situation in Portugal, the latest report has found.

The April housing market survey from the Royal Institution of Chartered Surveyors (Rics) and Confidencial Imobiliario (CI) shows that the country's beleaguered property market continues to suffer.

Real estate agents are experiencing much sharper price declines than developers but overall the market is very depressed, it also shows.

The national activity index fell a further six points in April to –32, while the national confidence index declined by two points to –53.

CI spokesman Ricardo Guimaraes said that the housing market can be characterised by falling prices, falling activity and depressed confidence.

"This is set against a wider economic backdrop of accelerating inflation, elevated unemployment and a shrinking economy that was -0.7 per cent in the first quarter of the year," added Rics senior economist, Josh Miller.

Portugal price falls 'gather momentum'

Thu, 28 Apr 2011 00:00:00 GMT

Price falls gathered in momentum within the Portuguese property market during March, it has been revealed.

According to the Royal Institution of Chartered Surveyors' (Rics) Housing Market Survey for the country, the declines are being driven by falling demand.

The combination of a fall in prices and demand has contributed to a decline in investor confidence in the country, with both value and transaction expectations remaining negative.

Indeed, the national activity index fell two points, to -26, while the national confidence index declined 22 points further to -51, Rics said.

Josh Miller senior economist at Rics, said: "The Portuguese housing market can be characterised by falling prices, falling activity levels and deteriorating confidence.

"This is set against a backdrop of rising inflation, elevated unemployment and a shrinking economy."

Mr Miller added that there is no real regional differences in the declines, with Lisbon, Porto and the Algarve all experiencing the falls.

Portugal property 'won't be impacted' by bailout

Tue, 19 Apr 2011 00:00:00 GMT

European Finance ministers' decision to offer Portugal financial aid will come as good news for the property market, it has been suggested.

Stephen Anderson, managing director of Portugal-based property firm Infinito Real, said that he does not expect the bailout to have a significant knock-on effect on the real estate sector.

"Portugal is a recession hit country, but this does not mean that we loose our tourism appeal, a fact verified by a record number of visitors last year and this year looks set to be no different," Mr Anderson added.

"If anything, there is now more rental potential for property owners as the Portuguese, who may have been looking to buy, are waiting and are therefore looking to rent, thus increasing owners' turnover."

Individuals looking to buy property in Portugal are likely to be buoyed by Mr Anderson's assertion that while prices in the country have dropped, the level of decreases is not a true reflection of market conditions.

Portugal's housing market remains 'robust'

Tue, 12 Apr 2011 00:00:00 GMT

Despite requesting an economic bailout from the European Union (EU), Portugal's housing market will be unaffected, it has been claimed.

This is according to Jorge Moniz, of Banco Espirito Santo, who believes that the financial aid will have no knock-on effect on the country's real estate sector.

Speaking to Overseas Property Professional, Mr Moniz said that his firm had seen an increase in the number of mortgage applications from UK residents looking to buy property in Portugal.

"It is important to note that Portugal hasn't suffered from a property bubble. On the contrary, over the past ten years up to now, our property prices have been quite stable," he added.

Mr Moniz explained that the Portuguese market has not suffered in the same way as other European counterparts. Oversupply is not an issue, while the country's banking sector is also relatively solid and stable, he said.

"Portugal is a mature destination for discerning buyers, and particularly renowned for the top end of the market," the expert told the news provider.

His comments follow news that the country has called for help from the EU to deal with its massive budget deficit, thought to be in the region of €80 billion.

Portugal to request EU bailout

Fri, 8 Apr 2011 00:00:00 GMT

EU finance ministers are expected to meet later today (April 7th) to discuss Portugal's bail out request, it has been revealed.

The country's caretaker prime minister Jose Socrates said on Wednesday that he had made an appeal to the EU for financial assistance.

As a result of low economic growth and high wages, the country has struggled to raise enough money through taxation to pay for government spending and reduce the ever-increasing national deficit.

If granted, Portugal will follow Greece and the Irish Republic in seeking a bail-out from other EU member states.

"I always said asking for foreign aid would be the final way to go but we have reached the moment," Mr Socrates said. "Above all, it's in the national interest."

The news could interest those looking to buy property in Portugal, with the economic situation likely to impact on home prices.

Indeed, foreign exchange bureau Caxton FX recently noted that the troubles in the country could lead to property values falling a further 20 per cent by the end of 2012.

Portugal property prices set for a 20% fall

Fri, 1 Apr 2011 00:00:00 GMT

Economic turmoil in Portugal could lead to property prices in the country falling a further 20 per cent by the end of 2012.

This is according to foreign exchange bureau Caxton FX, which noted that after the country failed to pass a strict austerity package, an EU and IMF bailout looks all but certain.

As a direct result of this, the firm suggested that property in Portugal was likely to fall in value.

Caxton FX explained that there has been a steady increase in the number of Brits buying property in the European country in the past year, adding that recent economic events mean that buyers will be able to negotiate more on asking prices.

Rupert Lee-Browne, the firm's chief executive officer, said: "Eurozone interest rates are likely to rise, increasing the expense of homeowner loans. As loan defaults increase, and the number of repossessions rises, I expect the price of Portuguese property to fall significantly."

House prices falling in Portugal

Fri, 25 Mar 2011 00:00:00 GMT

Weak demand and falling confidence in the Portuguese property market is causing residential home prices to fall in the country.

This is according to the latest survey from the Royal Institution of Chartered Surveyors, which noted that property values in February have continued to decline at roughly the same pace as the previous two months.

Indeed, many real estate agents are recording large price falls and the outlook for prices remains negative, the data shows.

The news may lead a number of individuals to consider making a property purchase in Portugal, with current low prices meaning that there is an opportunity to pick up a bargain home.

According to a spokesman from the firm, the main concerns of Portuguese real estate agents and developers relate to the financial constraints felt in the market.

"These concerns are being amplified by higher unemployment and political uncertainty," he said. "On the other hand, some expect a boost from tourism due to the political changes taking place in competitor countries in the Maghreb."

Amanda Lamb, presenter of A Place in the Sun, recently named Portugal as one of the most popular destinations to buy property.

Popular Portuguese cities 'buck the downward trend'

Fri, 17 Dec 2010 00:00:00 GMT

Property prices in some regions of Portugal are bucking the downward trend and increasing in value, it has been reported.

According to a survey by the National Statistics Institute (INE), homes in Madeira and the Algarve climbed by an average of 0.4 per cent and 0.8 per cent respectively during October.

This is despite the INE reporting that nearly all other regions in Portugal recorded price falls over the course of the month.

Both the Algarve and Madeira are considered appealing destinations for British-based buyers, A Place in the Sun reports, with both boasting great transport links and large ex-pat communities.

The news provider added that overall real estate values in the country fell on average by 0.6 per cent in October, compared to the previous month September and by 1.3 per cent compared 2009.

It could encourage a number of individuals looking to buy property in Portugal to take the plunge, with bargain prices available and demand in some areas starting to rise.

Portuguese property market set for slow growth

Tue, 14 Dec 2010 00:00:00 GMT

Individuals looking to buy property in Portugal may be interested to learn that the real estate market in the country is expected to slow in 2011.

According to a new report, rising supply and falling demand in the Portuguese market is a sign of increasing pessimism in the property sector.

The October RicsS/Ci Portuguese Housing Market Survey shows an increasing number of estate agents and developers reporting falling rather than rising prices.

Indeed, respondents to the survey have become increasingly pessimistic concerning the short-term outlook for prices and sales.

The price expectations net balance fell further into negative territory from –33 to –53, while the sales expectations net balance fell from +7 to –24.

"Portuguese real estate agents and developers remain downbeat. Survey respondents note that the recent approval of the Budget was not enough to calm financial market fears, which in turn is weighing on confidence in the real estate sector," said CI Spokesman, Ricardo Guimaraes.

OECD confident about Portugal's economy

Wed, 29 Sep 2010 00:00:00 GMT

The OECD has said that it is confident that Portugal will weather the current financial crisis.

According to the body, the European country has made major progress in terms of modernising its economic circumstances over the past few years, but had been hit hard by the crisis

OECD claims that the immediate challenge is to gain investor confidence by reinforcing Portugal's public finances - adding that the government's consolidation plan is the best way to achieve this.

"I am confident Portugal will weather this crisis. The ambitious fiscal consolidation strategy must be backed by a strong political consensus which the country has in the past been able to achieve," OECD secretary-general Angel Gurria said.

However, Mr Gurria said other challenges are more deep-rooted and further steps needed to be taken to make Portugal more resilient to future crisis.

The news may interest individuals looking at Lisboa property or property for sale in Leiria, with the country's strengthening economy sure to boost the real estate market.

Portugal property market is showing signs of gradual recovery

Mon, 29 Mar 2010 00:00:00 GMT

Despite the current economic climate, and the fact that the Portuguese property market posted its worst year on record during 2009, optimists have argued that the European destination is displaying signs of recovery.

The country has long been considered a favourite among British investors who look to take advantage of the popular tourist destination for its warm climate and enviable golf courses.

Manuel Puig, managing director of Jones Lang LaSalle Portugal, has claimed that as buyer confidence returns and activity begins to pick up the housing market will gradually start heading back in the right direction.

He continued: "By the end of 2009 the extremely pessimistic forecasts did not materialise and the market adapted itself to the new circumstances, which in turn is leading to a return of confidence."

The claims were made in a recent report which outlines the market's recovery.

It stated that increased demand, return of foreign investors and better access to finance deals will all help drive it forward.

Potential investors to the country may be interested in news that themovechannel.com reported that during 2009 Portugal hosted 11 million tourists and has a growth forecast of three per cent per year until 2017.

High-wealth property investors look to Portugal

Wed, 24 Mar 2010 00:00:00 GMT

An increasing number of more "savvy" high wealth investment clients have entered the Portuguese property market looking to take advantage of bargain properties and low interest rates, it has been claimed.

Financial industry news source MyIntroducer.com, has revealed that agents in the popular European tourist destination have seen a decrease in the number of lifestyle buyers in favour of new high-income clients.

Stephen Anderson, managing director of property portal Infinito Real, told the website that property that commands high rental yields was increasingly popular.

He continued: "When coupled with a large discount [properties] can bring in rental returns in excess of ten per cent per annum.

"Certain areas will yield a better return if you need to make an income from the property, so look for a bargain that will put you in a strong position to sell at a good price in the future."

Potential investors to the country may be interested in news that themovechannel.com reported during 2009 Portugal hosted 11 million tourists and has a growth forecast of three per cent per year until 2017.

Portugal's economy given improved outlook

Thu, 5 Nov 2009 00:00:00 GMT

Portugal's economy will do better in 2010 than previously expected, the European Commission has predicted.

The body revised its forecasts for the country, stating that rather than suffering a 3.7 per cent contraction this year, the fall will only be 2.9 per cent.

It also said the country will see its economy grow by 0.3 per cent next year, instead of declining by 0.8 per cent.

The new projection comes after Portugal was revealed to have come out of recession in the third quarter.

Such a situation could help bolster the property market as the country's economic conditions improve.

One area that may do particularly well is the Alentejo region, the Daily Mail suggested last week.

It predicted that there will be an influx of tourists and property bargain seekers following the opening of an international airport in the town of Beja before the end of this year, with at least one budget airline in negotiations about starting a service there from the UK.

Portugal property prices indicate positive trend

Sat, 12 Sep 2009 00:00:00 GMT

Portugal's property prices have started rising again, new figures have indicated.

The Knight Frank Global House Price Index stated that the country enjoyed a rise of 1.7 per cent in the second quarter of 2009.

It followed a 0.3 per cent drop in values during the first quarter, although that represented a continuation of an improving trend, with the last three months of 2008 seeing a one per cent drop and the July to September period a 1.9 per cent dip.

Buyers of Portuguese property may consider that on this basis the next quarter could provide a greater price rise, making now a good time to invest.

One factor that could justify such optimism may be the fact that the country is now out of recession.

Figures provided by European Union statistical agency Eurostat showed Portugal's gross domestic product expanded by 0.3 per cent in the second quarter of this year.

Portuguese property market 'weathering economic downturn'

Fri, 3 Jul 2009 00:00:00 GMT

The Portuguese property market has performed better than many others in Europe during the global financial downturn, it has been claimed.

Rachel Lupiani, head of the Carlyle Real Estate acquisitions team for Spain and Portugal, told Property Week News that the real estate sector in Portugal is "very localised in character" and has weathered the credit crisis.

"The market repricing across all property sectors will offer some compelling opportunities," she added, although the Iberian country has not been as severely affected by recent economic events as certain areas of Europe.

Carlyle Group has formed a new partnership with Crimson Investment Management to expand its operations in the Portuguese market and work with its third European real estate fund.

Mike Sales, head of property investments at Henderson Global Investors, recently told Reuters that Portugal would be his number one choice to purchase a "vacation residence or city bolthole" and he was looking at land in the country.

Portugal tipped for recovery soon

Thu, 21 May 2009 00:00:00 GMT

The Portuguese economy has been tipped to start growing again later this year, something that could help bolster its property market.

In an interview with Reuters, the country's finance minister Fernando Teixeira dos Santos said that the end of the recession will come in the current quarter of the year, with the second part of 2009 seeing a return to growth.

He commented: "With the high level of uncertainty in mind, I think the Portuguese economy is now passing through the worst moment and I think that as of the second half we will start seeing positive signs."

Mr Texeira dos Santos also noted that Portuguese banks do not have the toxic assets some in other countries have to contend with, although the government has had to nationalise one bank.

One part of Portugal that may see particular property growth is Guimaraes.

The city is set to be the centre of extra attention that could draw in new investment following its recent designation as joint European capital of culture for 2012.

Portuguese market continues to grow-100708

Thu, 10 Jul 2008 00:00:00 GMT

UK-based investors are continuing to buy overseas property in Portugal, according to a new report.

Homes Overseas magazine stated that the European country has so far avoided the worst of the economic downturn which has hit the continent.

The publication said that house prices are either stagnant or falling in many parts of Spain, whereas Portugal is continuing to see growth in the market.

Homes Overseas commented: "Portugal appears to have escaped the bust cycle with average prices trickling upwards over the past year or so."

The magazine added that the Algarve remains a particularly popular area among overseas property buyers, along with Lisbon and the Silver Coast.

Earlier this week, the investment potential of Portugal was highlighted by the Country Life publication.

According to the magazine, house prices in the Silver Coast region are about 30% lower than those in the Algarve.

However, rising interest and development in the area is fuelling growth in the market, leading to an increase in property values.

Portugal offers capital growth prospects-090708

Wed, 9 Jul 2008 00:00:00 GMT

Overseas property investors could be able to benefit from capital appreciation in Portugal, it has been revealed.

According to Country Life magazine, house prices in the Silver Coast region are about 30% lower than those in the Algarve.

However, rising interest and development in the area is fuelling growth in the market, leading to an increase in property values.

This means that people who enter the market early could be able to snap up a relative bargain, as it is likely to be worth more in the future.

Country Life commented: "House prices on Portugal's stunning silver coast are set to increase significantly over the coming 3 years."

The publication added that the region offers a number of lifestyle attractions as well, such as pleasant scenery and "spectacular" beaches.

This comes after currency specialist FC Exchange said Portugal is proving to be an attractive option for foreign buyers because it offers much lower property values than many other nations.

Portuguese economic changes could provide 'property potential'

Wed, 2 Jul 2008 00:00:00 GMT

Changes in Portugals economy could be a boost to property investors, it has been suggested...

Portugal 'escapes credit woes'

Fri, 28 Sep 2007 00:00:00 GMT

Portugal is likely to escape direct consequences of the credit problems facing international markets, a leading expert has said.

Carlos Tavarez, the president of stock market regulator CMVM, told local paper Diario Economico that Portugal's investors will face only a "residual" effect of the much-discussed credit crunch.

"We should not underestimate this situation saying it is temporary but on the other hand nobody can say that the situation will be amplified," Forbes cites Mr Tavarez as telling the paper.

However, he did warn that there could be no guarantee against the problem occurring on some level in the future.

As such, his organisation will be meeting frequently with investors in the country to ensure that any possible issues are anticipated.

In the UK, fears over the credit crunch having a major impact on property markets were allayed to some extent as Nationwide revealed that a 0.7 per cent rise in prices occurred this month.