Portuguese property sales see record rise

Photo: Chris Yunker

Portuguese property sales have risen by the sharpest rate on record, according to new figures, as the country's property market continues to rebound.

The latest RICS/Ci housing market survey shows that robust demand and an ongoing rise in prices are boosting confidence among agents.

New buyer enquiries jumped by the biggest margin in three months, with growth accelerating across all three regional markets. Agreed sales, meanwhile, experienced their highest increase since the RICS/Ci record began in 2010.

Indeed, demand for Portuguese property has significantly increased in the past year, thanks to the affordability of the country's real estate in the light of the favourable currency exchange rates with the weak euro. On TheMoveChannel.com, enquiries for Portuguese property rose 4 per cent in real terms in May 2015, making it the third most popular destination on the site.

According to RICS/Ci's survey, sales have now risen 15 months in a row.

Expectations, therefore, are at a record high among agents, as optimism spreads. The positive outlook is buouyed by the genuine recovery in prices, with values up for the fifth month in a row.

Over the next year, contributors predict prices will rise by around 2 per cent at the national level, with the strongest gains in Lisbon and the Algarve (around 2.5 per cent) and Porto seeing growth of 1 per cent.

"Genuine confidence appears to have returned to the market in recent months, with the recovery in both sales and prices expected to gather speed going forward," comments RICS Chief Economist Simon Rubinsohn.

Nonetheless, in the background of the market's improving picture is the Greek crisis. Talks to secure a new deal for the country in the final hours before its bailout deadline are fuelling financial uncertainty among investors.

Ricardo Guimarães, Director of Ci, notes that for the first time in a few months, Portuguese agents are "starting to mention the European situation" as a source of potential risk to the market.

The positive sentiment is "dominant", though, he adds.

Clouds may be on the horizon for Europe, but for Portugal, the sun is shining.