Signs of recovery are becoming more and more noticeable on the Portuguese property market. According to the latest figures, the number of properties sold in the first quarter of 2015 was the highest in five years.
Besides its amazing weather (more than 300 days a year of sunshine), beautiful beaches, world class golf courses (Portugal named world’s best golf destination in 2014), exquisite gastronomy and thrilling history, there are 5 important reasons why the time is right to buy a property in Portugal:
1. The GBP – EUR exchange rate is at the highest level for 7 years. UK buyers spending power has increased by 25% since 2012.
2. The latest survey from RICSW/CI indicates that property prices will rise by 2% over the next 12 months (2,5% in the Algarve and Lisbon).
3. Mortgage lending is increasing as banks become more open to providing mortgages to those looking for a second home.
4. Seven years ago, when exchange rates were last this high, property prices were higher than they are now.
Summary of RICS/CI’s Portuguese Housing Market Survey May 2015
– Confidence in sales market outlook strengthens as demand growth accelerates;
– Price and sales expectations hit fresh heights;
– Growth in buyer enquiries accelerates;
– Significant improvement in sales market confidence;
– Robust demand growth and a continued recovery in prices;
– New buyer enquiries increased at the quickest pace in 3 months;
– Agreed sales rose at the sharpest rate on record (series started in 2010) and have now improved for 15 successive months;
– Prices continue to recover at a steady pace;
– Near term price expectations are now stronger than at any other point of the survey’s five year history;
– Over the next 12 months, contributors continue to anticipate prices will rise by around 2% (2,5% in the Algarve and Lisbon);
– National Confidence Index (a composite measure of near term price and sales expectations) jumped to +46 from +33 last time around – another survey record.