Good news for the real estate market in Portugal comes from the latest RICS/Ci Portuguese Housing Market Survey (PHMS) which show an improvement in sales conditions during December 2013.
According to the PHMS, sales activity in Portugal’s property market rose marginally at the headline level for the second consecutive month and is expected to rise further in the near term. While new buyer enquiries experienced little change during December, the survey added that the national confidence index in Portugal remained positive for a second month in succession and now stands at +6. This is the best reading since the survey was launched in 2010, and only the third occasion in which a positive reading has been posted.
Portuguese house prices do remain in decline, added PHMS, but at the slowest pace in the survey’s history. Despite this, respondents are still projecting further falls in the coming three months.
In the lettings sector, tenant demand remained relatively flat whilst landlord instructions fell, representing the third straight month in which they have done so. Rents continue to fall, a trend which looks set to continue in the near term at least, as the expectations series points to further decline during the coming quarter.
By way of contrast, lettings activity is still anticipated to grow during the next three months. In terms of the regional breakdown, the negative trend in house prices has diminished considerably in Lisbon and the balance now stands in comparatively neutral territory. In addition, Lisbon was in fact the only area to see a pick-up in activity, whilst Porto remained stable and the Algarve experienced a marginal decline.
RICS Senior Economist, Josh Miller commented: “The December survey results again highlight a gradual improvement in the sales market environment, particularly with respect to activity levels. This is in keeping with the more encouraging economic news of late, however, there is still a long way to go until these trends may be regarded as genuinely sustainable.”
RICS Senior Economist, Josh Miller says: “The December survey results again highlight a gradual improvement in the sales market environment, particularly with respect to activity levels. This is in keeping with the more encouraging economic news of late, however, there is still a long way to go until these trends may be regarded as genuinely sustainable.”