According to industry experts, there is little doubt that house prices in Portugal will drop as a result of the COVID-19 pandemic. This comes after the property market reached record peaks in 2019, with expectations set equally high for 2020 (see here).
The real estate market is already feeling the ripples of the global standstill, which began to affect many countries around mid-March. This is the opinion of experts nationwide, who shared their thoughts with the Portuguese newspaper i.
Since Portugal announced a State of Emergency in late March, and along with lockdowns in several other European countries, there has been a fall in demand for houses, say real estate agents, and subsequently a drop in property prices.
Many have already seen a decrease in prices in the last few months. But despite it being too soon to back up the statement with concrete data, they believe that the drop won’t be as significant as of that felt in the global recession of 2008.
Following significant increases in house prices last year (see here), buyers could now see a window of opportunity, even if that means house-hunting remotely (read more). The effects are expected to be felt more significantly in cities such as Lisbon and Porto, which saw the most pronounced rises in the last couple of years. In the rest of the country, including the Algarve, a “slight readjustment” is expected.
For advice on searching for a property during the COVID-19 pandemic, or for more information on the buying process in Portugal, contact the Algarve Home Sales team here.