Ricardo Guimarães, CI's director, explains that "the residential market is benefiting from an increase in new credit activity, which, together with the imbalance between supply and demand, is allowing prices to approach pre-market levels before the crisis. The Residential Price Index calculated by Confidencial Imobiliário is now less than 1% below the maximum recorded in 2010”.
The October report shows that the surveyed operators believe prices will continue to rise at an average rate of 5% over the next 12 months, revising upwards the growth prospects by 4% anticipated in September. In the long run, is expected an average annual price growth around the 6% over the next 5 years.
Ricardo Guimarães also mentions in a statement that "the confidence of the operators in the market is quite high, as the movement of price growth is not only based on the financing increase, but is also supported by the dynamics of other sources of demand, such as the purchase of houses for tourism, for short-term lease”.
According to the PHMS, demand is high in all regions analyzed (Oporto, Lisbon and Algarve), and all of them register a slight reduction in supply. Demand in the rental market remained in October, although it fell slightly in comparison with the previous month, with the offer stabilized and incomes growing, with prospects of continuing this performance in the next 3 months.
Simon Rubinshon, RICS chief economist, explains in a statement that "the Portuguese economy continues to show one of the strongest growth in Europe, with GDP expansion accelerating in the third quarter of the year. Consumers saw their real incomes increasing, as inflation continues low and the unemployment rate is in lows for almost a decade. After years of deleveraging, families were able to increase expenses, helping to boost the recent strength in the residential market.”