Portuguese property market 'still struggling'
By Steve Binge

Portuguese property market 'still struggling'

Activity in the real estate sector in Portugal was not as negative in September as it was in August, new research has found.

The monthly Portuguese Housing Market Survey carried out by the Royal Institution of Chartered Surveyors (Rics) and Confidencial Imobiliario (Ci) found that despite a slight rise in activity across property markets, confidence declined.

Meanwhile, the indicator for the national price balance slipped from -59 to -65 over the course of the month.

Rics senior economist Josh Miller commented: "It is the demand side of the equation that is weighing down on prices in Portugal, with the double-digit unemployment rate feeding through to weaknesses in new buyer enquiries."

Ricardo Guimaraes, Ci spokesman, explained that an increase in the number of auctions of repossessed homes by banks is also forcing Portuguese property values lower.

Earlier this month, Knight Frank spokesperson Christian De Meillac told the Telegraph that areas such as the western Algarve are showing signs of recovery due to their "strong international appeal".

He noted that real estate prices here are still falling, but at a much slower rate than they were in 2009-10.

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