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December 2019

MOMENTUM REMAINS SUBDUED, ALTHOUGH NEAR TERM SALES EXPECTATIONS PICK-UP

  • New buyer enquiries and sales dip in December
  • House price inflation stronger over the month
  • New instructions down sharply again

Ricardo Guimarães

Director at Ci

“The latest figures from Confidencial Imobiliário’s Housing Rents Index show a decline of 1.4% in Lisbon. This is consistent with the market sentiment stated by the agents, which foresees rental levels reaching, or having already reached, a maximum. Not surprisingly, rents are directly related to tenant’s income and their ability to cope with a rent-to-income ratio increase. Rents stabilization was expected in the market. On the other hand, prices are still with a positive path, showing a strong resilience and exceeding the behaviour expected from agents, who point out the lack of affordable housing as one major market constraints.”

Simon Rubinsohn

Senior Economist at RICS

“Growth in the Portuguese economy looks to have outpaced that of the Eurozone (on average) in 2019, with consensus forecasts pointing to this continuing in 2020. That said, the gap between the two is closing, with employment growth gradually cooling after a strong run in recent years. As a result, the housing market is unlikely to receive quite as much support from the labour market going forward.”