House prices are stable in Portugal

House prices are stable in Portugal
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Published: 18th June 2020, 5:08pm

(3min read)

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. 

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Prices did not fall despite the reduced activity

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.

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Comprar uma propriedade em Portugall

A Portugal Homes possui profissionais muito experientes e conhecedores, que trabalham com alguns dos promotores mais reconhecidos em Portugal . A nossa vasta experiência permite-nos guiá-lo pelas melhores opções de investimento.

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Para saber mais sobre Residentes Não Habituais em Portugal e sobre os nossos serviços pós-venda, preencha o formulário abaixo.

É fantástico como o Ryan tinha um conhecimento completo sobre Lisboa e nos tratou da melhor maneira.

Akbar Ali - Investidor do Paquistão

Ryan é muito profissional, mas também amigável e conhecedor do mercado Golden Visa. Também se mostrou flexível, pois, com um curto aviso prévio, viajou do Algarve para me se reunir comigo em Lisboa e substituir 1 colega.

Investir do Reino Unido

A Portugal Homes fez um excelente trabalho mantendo-me atualizado sobre o progresso da compra da minha nova casa, fornecendo relatórios regulares e abrangentes. Isto ajudou-me a aliviar a ansiedade sobre a compra de uma casa durante a pandemia.

Investidor dos EUA

Embora através do Zoom, estabelecemos uma grande confiança na integridade do George. [Foi] importante para nós ter confiança na capacidade do staff em se sentir alinhados em visões.

Donald Collie de Austrália

O processo foi bastante rápido e claro. Obtive toda a informação que precisava na primeira hora de conversa. A experiência foi perfeita.

Tomoko Inoue do Japão

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