Strong demand continues to fuel price growth in Portugal’s property market.
The latest RICS/Ci Portuguese Housing Market Survey shows that transaction volumes continue to pick up at a solid pace, with estate agents reporting a “strong increase” in new buyers enquiries in February 2017. Indeed, agreed sales rose at the sharpest monthly pace since September 2015. What’s more, the rate of sales growth has now strengthened in each of the last three reports. Going forward, respondents envisage transaction volumes will continue to increase smartly over the next three months.
New sales instructions rose marginally for the second consecutive period, although this modest increase was once again outpaced by that of demand. These conditions continue to place significant upward pressure on house prices, albeit the rate of growth did soften in February (after four straight months in which house price inflation had accelerated).
Lisbon is thought to be the market with the strongest increase, but respondents to the RICS survey also highlight Algarve as a location primed for significant price growth in the near future.
Nationally, house price inflation is projected to accelerate to average nearly 5 per cent per annum over the next five years.
