Portuguese property sales up for 18th month in a row

Photo: Francisco

Portuguese property sales have risen once again in June 2015, as the pace of transactions gathers speed. Sales rose by the sharpest monthly pace since 2010, according to the latest RICS/Ci report, with deals now up continuously for a year and a half.

Porto, previously the weakest spot in the market, is now showing "particularly pronounced" increases in activity, with new buyer interest contining to rise at a firm pace across all regional markets.

Rising demand is also helping to drive the ongoing increase in prices: the pace of house price inflation increased in Jeun, which marks the sixth month of price growth in a row.

Respondents to RICS/Ci's survey of professionals in the country now predict prices will rise by 2.7 per cent in the coming year, with recovery led by Lisbon and the Algarve (3 per cent) and followed by Porto (2 per cent).

"The recovery in sales market activity appears to be gathering momentum, driven by improving economic fundamentals and rising confidence," comments RICS Chief Economist Simon Rubinsohn. "However, significant risks remain within the euro area which could damage sentiment if a resolution is not found."

Indeed, the activity improved despite the month also seeing the crisis surrounding the Greek economy intensify.

Ricardo Guimarães, Director of Ci, comments: "It was important to see the Portuguese market’s resilience in the face of the uncertainty caused by the Greek crisis. Risks were highlighted by the agents but, nevertheless, activity indicators remained clearly positive, regarding both sales and prices. This was a critical test for the market, reinforcing its potential."

Going forward, sales are now expected to enjoy "robust growth".