Greater stability in the home-buying/selling market and signs that the rental market is recovering – these are the findings of the recent Portuguese Housing Market Survey (PHMS).

The PHMS found that the property market has become more stable, although the economic consequences of the current pandemic should continue to influence market development prospects for some time to come.

In regards to the rental market, demand from tenants has increased slightly for the first time since February, showing some signs of recovery, according to the PHMS. However, rental prices are still falling, a trend that looks to continue in the short term.

Insights from the experts

A partnership between the Confidencial Imobiliário data bank and the chartered surveyors RICS, the survey was conducted on a panel of real estate agents in the regions of Lisbon, Porto and Algarve.

“The feeling of real estate agents is in line with the latest quantitative indicators published by Confidencial Imobiliário,” says Ricardo Guimarães, director of the national data bank.

He explains: “According to the latest Residential Price Index, the national trend is positive, with a growth of 0.8%. This result is reinforced by the new increase in sales, which recovered 11% in June compared to May. Even so, there are still some clouds over expectations, with many agents concerned about the increase in unemployment and the current exclusion of Portugal from the list of safe tourist destinations.”

Simon Rubinsohn, senior economist at RICS, adds that “although economic indicators in Portugal point to some recovery, this recovery was quite limited in view of the sharp declines in March and April”.

He continues: “In future terms, activity should improve in the second half of the year, but the strength of the recovery will depend on the effectiveness of the exit strategies from confinement and the recovery of external demand.”

For expert advice on buying and selling in Portugal during the pandemic, contact the team at Algarve Home Sales.