Overseas property investors looking to purchase in Portugal need to move quickly, as Portuguese properties are selling fast.
Recent data from national real estate association APEMIP has revealed that more than 80 per cent of all Portuguese properties put on the national market recently, sold in less than six months.
Of the properties now selling fast, the majority (61 per cent) that sold the quickest were one and two-bedroom properties.
The association confirmed, based on its December barometer, that ‘the Portuguese real estate sector is experiencing a dynamism that has not been seen for a long time, especially with regard to the residential segment’.
The December barometer conducted by APEMIP’s Studies Bureau also noted that the average value of properties sold is going up. However, there are still competitively priced properties to be found.
More than half (about 55.6 per cent) of sales involved real estate with prices up to 175,000 euros, values that APEMIP said mirror the bulk of sales made in the domestic market, and the majority were one and two-bedroom properties.
APEMIP president Luís Lima commented: ‘It is absolutely fabulous to witness this dynamic, especially when compared to the scenario two to three years ago, where assets in the portfolio took up to two years to be transacted.’
Mr Lima feels that a lack of available housing stock is also leading to properties selling fast.
He said: ‘The biggest difficulty, and therefore the great challenge of the real estate sector in Portugal, is the lack of real estate stock in the cities, which is the main factor for the accentuation of prices that has been verified in the market.
‘Supply is declining, and it does not respond to the needs of demand, so a return to new construction is starting to look inevitable.’
He continued: ‘As new-builds go up, we will be creating advantages for families who will be able to find assets on the market that best meet their needs and abilities; for real estate companies who will have more product to market and meet the needs of their customers; the banking sector will guarantee dividends through investment financing and through mortgage loans.’