A continued rise in demand for property in Portugal has seen the Portuguese real estate sector continue to improve with house prices increasing and reflecting the market trends.
The most recent report by Confidencial Imobiliário (Ci) has shown that property prices in Portugal have increase by some 6% according to the data from the May 2017 Private Property Index.
Property prices have been tracked by Ci since 2009 and the latest results show the highest year on year increase recorded since Ci began to assess the results.
Already the company had identified April 2017 as being a boom month for real estate with increases registered at 5.7%, however the new figures for May show the market to have risen by one percentage point year on year and are an impressive three times higher than the 2% observed early in 2016.
In monthly terms the report has shown that the pace of house price appreciation in Portugal has been relatively stable, with the monthly rate of change only varying between 0.85 and 0.3% over the past three months.
The lowest point in the market since the records from Ci began in 2009, which was reached during June 2013. Since this low point house prices have grown by 15.4% in cumulative terms according to Ci.
Property prices in Portugal have never fluctuated massively thanks to the limited supply of real estate usually mirroring the general level of demand, unlike in other countries where a glut of property has led to huge price fluctuations.
Rising prices of properties in Portugal mean that those looking to invest in the country would be wise to buy sooner rather than later as trends all indicate that property prices are set to continue to increase in the coming months.
In many cases properties are now returning to the price levels seen before the global economic crisis while those in sought after areas such as the western Algarve area of Lagos or in the central Algarve area of Carvoeiro traditionally command higher prices thanks to ongoing demand.
To find out more about the property market in Portugal or to find your ideal home in the Algarve, contact a member of the team directly.