Confidence in portuguese property hits record high

Photo: Fraser Valley Pulse & Metro Vancouver Pulse

Confidence in Portuguese property is now at a record high, according to the RICS/Ci Housing Market Survey.

The latest report shows that sales activity is continuing to pick up. Indeed, August 2014 marked the 12th month in a row where demand had continually risen. With prices "a step closer to stabilisation" too, this combination of improving conditions has boosted confidence among agents.

The recovery remains mixed depending on the region of the country. The Porto sales market continues to lag behind with prices still falling and expectations in negative territory. Nonetheelss, the confidence index is now at +23, the highest reading in the history of the RICS report.

CI Spokesman Ricardo Guimaraes says: "Agents clearly associate the market recovery with foreign demand, linked to the Golden Visa and non-habitual resident programs. These legal and fiscal measures have been critical in changing the trend in the market. The general economic stabilisation is also contributing to the improving outlook."

The figures follow reports from TheMoveChannel.com that demand for property in Portugal is now at a record high, with enquiries on the site surging 32 per cent in August 2014, making the country the second most popular in the world for the first time.

The latest Quarterly Index data from the Overseas Guides Company echoes the trend. The Index, which measures interest in destinations across the world from the enquiries they receive from people purchasing property overseas, saw Portugal experience a 60 per cent increase in interest in the second quarter of 2014.
 
In response, Portugal Buying Guide, part of the Overseas Guides Company, and Smart Currency Exchange have joined forces to open a new, one-stop-shop for anyone looking to buy property in Portugal, officially launching the new premises in Vilamoura on the Algarve on 23 September.

"These new offices in the heart of the Algarve will allow us to help would-be buyers while they are here viewing properties, or even here on holiday or initial reconnaissance trips," comments Laura Richards, Portugal Buying Guide’s country specialist based at their London Resource Centre.

RICS Senior Economist Josh Miller adds: "The August survey confirms that a more stable price picture is emerging, while the pick up in activity indicators should provide further support. Unemployment has seen a meaningful decline over the past year, but remains elevated. Therefore a sustained improvement in both the labour market and broader economy will be essential to any possible turnaround in the housing market."