The sale of properties in Portugal increased by 23% in May, compared to the previous month, after a huge decrease in April. Yet house prices are not falling, according to Confidencial Imobiliário, a Portuguese databank of statistical data based on real transaction prices, yields, and residential lease contracts.
April was the month with the greatest loss of activity compared to January, although a reduction in sales was noted already in February, with transactions falling. In March, this decrease worsened, when the country adopted the containment measures. However, the biggest retraction occurred in April, with a decrease of 53%.
Even so, this means that, in full confinement, the market was able to maintain an activity level of about half of the pre-COVID, which is still remarkable. It is a sign of the sector’s resilience, which the results of May fully confirm.
The market shows a clear reduction in activity, but didn’t reflect on the prices. In fact, house prices rose 0.9% in May, compared to April.
As price being the variable that sums up all the pressures, this suggests that the market is resisting the price reduction strategy in reaction to the drop in sales, as there is a strong belief that the price levels practiced in the market have a strong probability of being observed again after the end of the pandemic crisis, says Ricardo Guimarães from Confidencial Imobiliário.
It is true that the measures to combat the pandemic have paralyzed an array of sectors around the world economy. This led the International Monetary Fund (IMF) to make unprecedented predictions in its almost 75 years: the world economy may fall 3% in 2020, dragged by a contraction of 5.9% in the United States, 7.5% in the eurozone and 5.2% in Japan.
In Portugal, the Government expects the economy to decline in 2020, obviously, but make up for it in 2021.
Portugal Homes has very experienced and knowledgeable professionals working with some of the most established and reputable developers Portugal has to offer. Our vast experience allows us to guide you through the best investment choices.
Whether you want a holiday home or an investment property, we select the best units for your profile and take care of all the process from start to finish. Even after the sale! Our After Sales services assume the responsibility of furnishing your property at your taste, taking care of the property in your absence, managing the rentals if you wish to rent your property when you’re not in Portugal and so much more!
To learn more about the Portuguese Non-Habitual Resident Program and our After Sales services, please fill the form below.
Overwhelming. Luisa has exceeded our expectations on all levels. Trust was established immediately. Enhanced by super friendly professionalism. The networks to banks, accountants, lawyers was seamless. there is not enough space here to write all the positives, enough to say we are making an offer and we only arrived 4 days ago. Its impossible to improve from perfection!John Mulroe and Wiebke Bock
Thank you. Lovely experience with all of the staff. George was very helpful, knowledgeable and had a good grasp of the financials. Will recommend Portugal Homes to friends. Also excellent experience with the After Sales - very helpful.Nadia Webb
Portugal Homes is very customer-oriented. Mr. George Hobson epitomizes professionalism and dedication. This in addition to his amiable and congenial attitude.Investor from Algeria
Thank you very much for your help. I'm glad to have chosen Portugal Homes as my property management agent.Investor from Hong Kong
Simon has been wonderful to work with. We did not feel pushed in any way.Andre & Lena Jourdan from USA
Portugal Homes is a personal and competent company. Our experience with Antoine was excellent and enjoyable. Thank youUsha Pinninti from Texas, United States of America