Property prices in Portugal have risen by 14.2 percent in just one year, making it the biggest increase in the past 26 years in the country.
The latest figures on the Residential Price Index as published by Confidencial Imobiliário, have shown that the increase in house prices recorded over the first quarter of 2018, were the highest since 1992 and demonstrate a return to form for the property market.
According to the report the price of property in Portugal has risen for 11 consecutive quarters and it is the town and city areas of the country that have seen the greatest rises. Property prices are now surpassing those seen before the global economic crisis in 2007.
While the boost for the sector has been largely welcomed, there are some people who are becoming concerned with how fast prices are rising and are urging for caution to avoid over valuations.
According to The Portugal News: “The Bank of Portugal said in one of its latest reports that “some signs of over-valuation of real estate prices have started to emerge”.
“Fears that rising prices could provoke another real estate bubble has seen the central bank issue a recommendation that as from 1 July, banks should exercise greater caution in issuing mortgages and personal loans.
“According to the Bank of Portugal, overall foreign investment in real estate in the country in 2017 represented 80 percent of all transactions, with fears rising that domestic homeowners are being priced out of the housing market. Rental prices have also shot up to new highs.”
The property market in Portugal has seen considerable growth, however thanks to policies to prevent over saturation of the market it remains a steady choice, especially when in comparison to other European countries such as Iberian neighbours Spain who were badly affected by the crisis thanks to overbuilding.
Phone: +351 213 471 603
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.
Thanks to Andreia Leite for the comprehensive and timely updates on the construction progress of the new development we purchased!Investor from the USA
Very helpful. Work with his heart. Mark is a very nice advisor.Investor from Morocco
Everything was perfect. I got all answers about my questions.Investor from Turkey
Ryan was an excellent real estate agent, he really steered me in the right direction based on what I said was important to me. Living in another country, I wasn't as familiar with the city as he is. Where I thought I wanted to live and what I truly wanted were not the same. He took the time to listen and figure out the best spot for me, and we are very happy with it - far more than we would have been elsewhere.Investor from the USA
The overall experience was great from follow up to After Sales. I would like to give special thanks to Mr. Simon, Ms. Francisca and Ms. Mariana.Investor from UAE
George Hobson is a pleasant young man, came across as knowledgeable, experienced, hardworking, honest & disciplined; I felt very comfortable in easily making my investment.Investor from UAE