Portugal Property News

Low Portugal Property Prices Makes Buyers Market

Low Portugal Property Prices Makes Buyers Market
The ongoing problems in the Eurozone and Portugal’s economic woes have contributed to a further fall in property prices in the country. Investors looking to buy homes in Portugal can now benefit from lower prices after new figures show that property values in the Iberian nation fell by 8.9 per cent in the last year.

If you’re looking to buy property in Portugal, now could be the perfect time, as we see here.
Property in Portugal becoming cheaper for overseas buyers
New data from Statistics Portugal (INE) has found that the average property price in the country fell by 8.9 per cent in the year to May 2012. The average property is now priced at ?1,047 per square metre – an 11.3 per cent fall in the last year when adjusted for inflation.

During the year to May 2012, property prices in the Lisbon metropolitan area fell by 4.8 per cent, while they fell by 6.2 per cent in Porto.

On a quarterly basis, property prices in the country dropped 0.8 per cent in May 2012.
The statistics show that prices of flats fell faster than house prices. The average price of flats dropped by 10 per cent year on year while the average house price fell by 7.2 per cent over the same period.

One of Portugal’s major problems is that there is currently hardly any activity in Portugal’s residential construction sector. Global Property Guide reports that the construction sector owes banks around ?25 billion and the total number of property and construction firms going bust has risen by almost 50 per cent in 2012 from the previous year.

Property prices in the country are projected to continue falling for the remainder of the year and domestic demand for Portuguese properties is expected to remain weak. But, with falling prices, it could be the perfect time for overseas buyers to snap up property in the country.