Portuguese Housing Market Survey

“Prices levels are challenging the market and concerns are rising from agents about the lack of houses available for sale at reasonable prices. Some state that these levels are already reducing the number of new buyers in the market. This is not just because transaction prices are high but also due to the impact on asking prices defined by sellers that are now testing price limits. This is mentioned especially with regards to demand from middle class families.”

“The latest labour market statistics show the rate of unemployment has fallen to 7.8% across Portugal, lower than before the onset of the global financial crisis. This continued improvement has been a key factor driving demand across the housing market. The macro environment looks set to remain supportive, although recent price growth may begin to price more people out of the market in certain areas if it continues.”