“Portugal does not have and is not facing a real estate bubble” said former CEO of Novobanco
Speaking at the Portugal Real Estate Summit in Estoril on Tuesday, the banker and economist said Portugal’s real estate market is being affected by a lack of supply at a time when demand continues to be resilient.
The increase in prices was not associated with the increase in family debt. “Despite what many people are saying, Portugal does not have a property bubble and won’t see one. House price increases are moderate, with adverse base effects and stricter financial conditions. Demand remains resilient, although transactions are falling,” said António Ramalho, former CEO of Novobanco.
The economist said that the increase in house prices in Portugal was influenced by overseas demand, by the boom in tourism, and by a stagnating new build market. “The increase in prices is not down to an increase in family debt,” he said.
António Ramalho said that the real estate market in Portugal was a “mature and professional market” that is being affected by a lack of supply.
“Unlike other peripheral destinations, Portugal continues to be a low-risk market because of its local importance. I wouldn’t say that Portugal is the best real estate market in the world, but it is one of the best,” he added.
The opinion was shared by the ex-minister of the Economy and Digital Transition, Pedro Siza Vieira. “The Portuguese market is very mature, one in which a large part of the Portuguese are homeowners and a significant number of almost two million families have their mortgages paid off,” he told Jornal Económico.
“There continues to be very significant demand for the very little offer in the market, so we won’t see the kind of real estate bubble experienced by Spain in 2008,” he said.
Source: Essential Business