Portuguese Housing Market Survey

“Market participants comment that buyers are anticipating the impact of new constructions to come on price levels. But some expect that the arrival of new houses will push prices up, despite its effect on the balance between supply and demand. At the same time, for others, price increases in central locations is an opportunity for secondary markets, where investment is starting to be seen. More widely agreed on is the idea that all new public measures oriented to the rental marker are squeezing rents higher and reducing the number of houses to let.”

“Employment growth, although still healthy, has softened a touch over recent quarters, and this seems consistent with the steadier trend coming through in the housing market. While expectations from survey participants remain positive, it does now appear that growth in market activity will be more moderate going forward.”