The recently released September 2015 RICS/Ci Portuguese Housing Market Survey (PHMS) has revealed a swiftly moving market, with sale indicators pointing to the fastest level of monthly growth in sales volumes since they survey began in 2010. A sustained rise in demand has led to an acceleration in prices, with the market seriously gathering momentum.
On the ground, agents are equally positive about the state of the market. Chris White, Founding Director of boutique estate agency Ideal Homes Portugal, comments,
"Portugal's property market is booming once more! Sales have increased hugely this year and we've seen a significant shift in buyer profile as increasing numbers of investors realise the potential of the Portuguese real estate sector."
The numbers speak for themselves. In 2014 Ideal Homes Portugal sold a total of €14 million worth of property. In the first nine months of 2015, sales have already topped €25 million, an increase of 79%. Over the same period, the total number of properties sold by the company has increased by 69%.
In 2014, 90% of those buying property in Portugal through Ideal Homes Portugal were looking for a holiday home. Now, just 40% are after second home, while 50% are after an investment property (with the remaining 10% of buyers looking to relocate).
Two bedroom apartments costing around €200,000 are the most sought-after type of property. That kind of money is sufficient to buy a two bedroom penthouse apartment just a short walk from Praia da Rocha beach, one of the Algarve's largest stretches of sand, backed by an array of shops, bars, restaurants and a glamorous casino. The same amount could also be used to purchase a two bedroom townhouse on a closed condominium with pool.
The Ideal Homes Portugal data also reveals an upturn in the mid-market property sector, for homes costing between €400,000 and €1,000,000. €400,000 is sufficient to purchase a superb two bedroom apartment with 100m2 roof terrace and shared pool on a luxury resort near Carvoeiro. For just under €1,00,000, buyers can enjoy a five bedroom detached villa with heated swimming pool close to the beaches and golf, in Varandas do Lago, Almancil.
Resale properties are currently outstripping new builds, with the Ideal Homes Portugal figures showing a 40/60 split in favour of resale homes. The findings are in line with the August 2015 RICS/Ci PHMS, which reported faster growth for the existing dwellings market than for new builds.
The massive surge in interest, particularly from British buyers, is thanks in large part to the on-going favourable exchange rate.
"Buyers are feeling safer in the UK market and are thus more confident about buying overseas," observes Ideal Homes Portugal's Chris White. "They're looking for somewhere to invest in property that's close to home and that means they can take advantage of the pound's continued strength against the euro. Portugal is the obvious choice."
RICS Chief Economist, Simon Rubinsohn also recognizes the increased confidence in the Portuguese market. He comments,
"The September results show the ongoing improvement in market activity is gathering steam. This is being driven by consumer confidence toward making major purchases reaching a post-crisis high as the economic backdrop continues to brighten."
The swift pace of the market certainly shows no indication of slowing down. At Ideal Homes Portugal, the team hosted 61 client visits during the month of October 2015, compared with 44 in the same month the year before. After a difficult few years, it seems as though the Portuguese housing market has finally found the confidence that it was lacking, with investors and second home buyers looking to pick up a property swiftly in order to take advantage of rising prices.
For further details call Ideal Homes Portugal on 0800 133 7644 or +351 289 513 434, email enquiries@idealhomesportugal.com or visit www.idealhomesportugal.com.
