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Portugal may not be headed towards a property bubble, but house prices are certainly overvalued, says the Bank of Portugal. Its governor calls for close monitoring of the real estate sector.
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According to a study by Bloomberg Economics, Portugal is the 13th country in the real estate bubble risk table, despite the Bank of Portugal recently admitting an overvaluation of house prices.
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Compared to the previous month, house prices in Portugal increased by 2.5%, according to the Residential Price Index for the month of May.
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When it comes to sunny European destinations, Portugal is a better alternative to Spain due to new visa requirements and the cost of living, say Brexit experts.
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Demand for property in the Algarve has surged in recent weeks. For British buyers, Carvoeiro, Albufeira and Vilamoura are the top destinations to buy a home.
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