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April 2019

House price inflation continues to fade

  • House prices flat in Lisbon and the Algarve
  • New buyer enquiries soften slightly
  • Fall in new instructions shows no sign of easing

Ricardo Guimarães

Director at Ci

“Almost all respondents’ comments confirm that investors are more cautions, searching for the best opportunities, aware of potential overpricing risks. Sellers are reducing their expectations, and some are reducing their properties’ asking price. Some agents mention that the volume of new houses under construction will also put some pressure on prices, especially in the resale market. At the same time, despite increases in new loans, agents feel that credit restrictions are limiting potential demand.”

Simon Rubinsohn

Senior Economist at RICS

“Despite growth in Portuguese economy regaining some momentum through the early part of 2019, the housing market appears to be losing some impetus. With consumer confidence still relatively solid, it suggests other factors, such as affordability and a lack of stock, may be taking their toll on demand.”