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Property prices up as market shows clear signs of recovery

Property sales and prices in Portugal are expected to continue increasing in the coming years, according to the Portuguese Housing Market Survey (PHMS).

If the survey’s estimates are correct, house prices will grow 2% in 2016 and around 4% in the next five years.

The Algarve is where prices will increase the most (+3%), followed by Lisbon (+2%) and Porto (1%).

The survey, based on the responses of 150 real estate companies, also found that more people are renting homes and that the price of rentals has “grown in the last eight months in Portugal after several years of decline”.

Realtors expect the rental market to keep growing in the coming months.

And though property sales did stagnate in December, realtors are not worried and believe “it is temporary”. In fact, it was the first time since late 2013 that property sales did not increase.

“With the national economy improving, the (property) market is in good condition to resume its recovery in the months ahead,” said Simon Rubinsohn, Senior Economist of RICS (Royal Institute of Chartered Surveyors).

The Portuguese Housing Market Survey is a monthly sentiment survey – developed in partnership by Confidencial Imobiliário (Ci) and RICS- of estate agents and developers who operate in the Portuguese residential sales market. The PMHS is “directly comparable” with RICS UK Housing Market Survey.

Photo by: Bengt Nyman