RICS index shows property market could be close to turning the corner

Price falls in the Portuguese property market were largely unchanged compared to the preceding months, suggesting that the rate that values are falling is slowing down compared to recent years.

This is according to the most recent index from the Portuguese division of the Royal Institution of Chartered Surveyors (RICS). The RICS report for July 2013, produced in conjunction with Confidencial Imobiliário (CI) and covering the sales and lettings markets in Lisbon, Porto and the Algarve, also showed that the balance of agreed sales in Portugal is also stabilising.

More good news is that Portugal’s national confidence index – a composite measure based on price and sales expectations – reached its least negative value since September 2010. This more positive reading was in part the result of the price expectations balance, which this month recorded its least negative reading since the RICS survey began.

RICS Senior Economist, Josh Miller said: “The July survey results point to further very tentative signs of a trend towards stabilisation in the sales market, although the lettings market is running out of steam, with new landlord instructions now falling alongside rents.”

CI spokesman Ricardo Guimaraes added: “July was a period of high uncertainty, thanks to the instability of the Government coalition. After a relative improvement in sentiment during the past few months, agents are hoping the latest political setbacks won’t hit confidence in the market.”

Meanwhile, the July index also showed that lettings activity is weak and rents continue to fall with activity in the market stalling.

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