Portugal 'expecting rise in distressed property for sale'

The volume of distressed property in Portugal is expected to increase over the first quarter of 2012, compared to the final three months of 2011.

In the Royal Institution of Chartered Surveyors (Rics) new Global Distressed Property Monitor report, respondents are anticipating that demand for such assets will be significantly lower than supply.

However, professionals in the nation did record a substantial increase in the level of interest in distressed real estate from specialist property funds during the final quarter of 2011, compared to the previous three-month period.

Simon Rubinsohn, Rics chief economist, explained these problems are not solely limited to eurozone countries.

"The economic news flow remains mixed at best and sentiment in the real estate sector is still fragile in much of the world as a consequence," he asserted.

Investors with property in Portugal may have been encouraged by comments made by Rics senior economist Josh Miller last month.

According to the expert, a lack of available mortgage finance has forced many homeowners into the rental sector, presenting opportunities for those who can find an alternative way to fund real estate purchases.

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