Portugal property prices are expected to rise by as much as six per cent per annum for the next five years.
The positive forecast for Portugal property prices comes from the Portuguese Housing Market Survey (PHMS), carried out every month by RICS (Royal Institute of Chartered Surveyors) and Confidencial Imobiliário (CI) magazine.
The survey expects the upward trend for Portugal property prices to continue, mainly due to there being ‘too much demand and not enough supply’ in the Portuguese property market.
The PHMS survey reported that the real estate sector in portugal has seen an increase in demand from buyers and sales rising, while the number of new properties made available for sale is falling.
Whilst Portugal property prices in most main areas such as Lisbon and the Algarve continue to rise, Porto has actually seen the rate of price growth accelerate considerably.
The market is also seeing property rental growth, with the number of properties available to rent dropping more notably than the previous year.
New residential developments are on their way to help satisfy the demand for residential property in Portugal. Licences for residential projects increased 66 per cent in Lisbon and 82 per cent in Porto over the last year.
These new projects are expected to go some way towards stabilising the market, but solid property price growth is still expected for years to come, especially with the continued recovery of the Portuguese economy.
Simon Rubinsohn, Senior Economist of RICS, said: ‘The Portuguese economy registered a solid recovery and 2017 may well have registered the largest growth in the last decade.’
He continued: ‘The forecasts for 2018 are equally positive and job growth, alongside low inflation, should continue to provide a solid foundation for consumption and ensure that the setting for the development of the residential market will remain favourable in the future.’