According to June’s2015 RICS/Ci Portuguese Housing Market Survey, property prices in Portugal are predicted to rise 2.7% in the next year, with the market expected to be resilient despite the “Grexit saga”.
The steady recovery in prices is supported by rising demand and increasingly strong growth in sales activity, particularly in the Algarve and Lisbon and the Algarve, the two areas which are likely to see the strongest price growth in the following 12 months (around 3%). Porto is predicted to see rises of about 2%.
The report also revealed that tenant demand is rising and that rents were steady for a fourth month in a row.
“It was important to see the Portuguese market’s resilience in the face of the uncertainty caused by the Greek crisis,” says Ricardo Guimarães, director of Ci. “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.”
RICS chief economist Simon Rubinsohn warns: “The recovery in sales market activity appears to be gathering momentum, driven by improving economic fundamentals and rising confidence. However, significant risks remain within the euro area which could damage sentiment if a resolution is not found.”