Portuguese real estate market slow as demand remains weak

Weakening demand is continuing to depress the residential property market in Portugal but prices are falling as a slower pace, according to the latest Royal Institution of Chartered Surveyors/Ci Portuguese Housing Market Survey.

Confidence nationally is still low and activity in the housing market is still declining with real estate agents experiencing much sharper price declines than developers, it also shows.

The National Activity and National Confidence indices fell by another one and two points respectively to –49 and –61. However, the report says it is noteworthy that the national price balance, whilst still indicating a weakening picture, suggests prices are falling at a slower pace than previously.

‘With the Portuguese unemployment rate at 12.4%, it is unsurprising that house prices and activity is falling, while confidence remains very depressed. Interestingly, the main factor weighing down on prices is falling demand, rising supply is not an issue,’ said RICS senior economist, Josh Miller.

Source: PropertyWire.com