The predicted rise in house prices in Portugal is being mainly attributed to the continued rise in demand from buyers, coupled with a short supply of properties available on the market.
Within Portugal, the areas that are set to see the highest increases in prices are Lisbon, the Algarve and Porto, maintaining the traditional hotspots within Portugal. Lisbon and Porto are consistently popular with property buyers thanks to them being the largest cities in Portugal, while the holiday rental potential help to keep the Algarve one of the most expensive areas of the country to buy a home.
Ricardo Guimarães, the director at Ci, said: “Expectations remain limited by the dynamics on the supply side of the market. Confidencial Imobiliário’s indices shows that prices are growing at an accelerated rate and in a more generalised manner, increasingly covering secondary locations. At present, agents are still very concerned about the lack of houses available. It is known that there is a huge improvement in the number of new residential projects in pipeline to be built, but those units are not immediately available for final buyers.”
A large number of new construction projects have begun in Portugal in recent months, thanks largely to the turn around of the economy in general. It is hoped that by building more homes and adding them to the market it will help tackle the problem of a short supply in housing, however this will take some time and is not expected to have an effect on the overall increases in prices in the market.
Those looking to invest in property in Portugal are advised to begin the process sooner, rather than later to ensure the best prices available.
If you would like more information about the Portuguese property market, contact a member of the team today to discuss the fiscal benefits of investing in Portugal and the Algarve.