Portugal Real Estate Market Will Recover for One Year
After the crisis in 2008, over the course of ten years, Portugal was able to recover and stabilize its economy. Today, the country remains very affordable both in terms of life and the cost of real estate for foreign investors.
Before the crisis, COVID-19, the cost of housing in the country was comparable to the proposals in the Russian Federation. Also, the living conditions in the country are very attractive for foreign real estate buyers: investors can easily get a multivisa, a residence permit, have no restrictions on the purchase of objects, taxes in Portugal are quite low as well.
Until the last moment, the cost of housing only added, promising a good return to investors. That was until the latest events with the COVID-19 pandemic.
Today, experts from the Portuguese residential real estate market note a sharp drop in residential property prices, demand, and are confident that prices will return to the pre-crisis level only a year after the quarantine was lifted and the COVID-19 pandemic ended. At the moment, the market is in free fall.
A report by RICA, the Royal Institute of Chartered Appraisers, based on their monthly review of the Portuguese housing market, said social distance measures would be extended in the coming months, and sales should not be expected in the near future.
71% of respondents, according to their data, expect a decrease in sales in the real estate market. Also, according to the report, prices have already fallen by 18% in March, and further decline is expected over the next 3-12 months. Prices in Portugal next year are expected to fall by just over 7%.
In addition, the housing rental market showed us the first drop since 2014 — a decrease of 37%. Tenants believe that rents will continue to decline in the short term.