Property buying activity in Portugal stagnated last December, according to the 'Portuguese Housing Market Survey' released today, which regarded December as "a temporary trend" while predicting that sales will grow throughout 2016.
Based on responses from estate agents, dull sales last December were mitigated by demand for leases which continued to strengthen, leading to a growth in rental prices achieved.
December 2015 saw "a temporary trend, and the outlook is for an increases in sales in the short-term.”
In the rental market, "the demand from potential tenants accelerated throughout December," with a corresponding rise in rents achieved, not a new trend as "housing rental values have been rising steadily over the last eight months, following years of steady decline."
As for property sales, "the pace of inquiries from potential customers stagnated for the first time since December 2013, with sales volume remaining unchanged."
There was a slight increase in private transactions with prices improving throughout the country but property developers saw a steep drop in sales.
Professional guesstimates are for a rise in house prices, "of about 2% over the next 12 months and an average rate of 4% per year over the next five years."
An analysis region by region sees the Algarve leading the rise in house prices through 2016, with an increase of 3%, while in the Lisbon and Oporto, growth will be 2% and 1% respectively.
The 'Portuguese Housing Market Survey' is a monthly survey conducted in partnership between the Confidential Property and the Royal Institution of Chartered Surveyors and covers Lisbon, Oporto and the Algarve.
