Increased Dynamism in the Real Estate sector
According to data from the Portuguese Real Estate Professionals and Brokers Association (APEMIP), real estate in Portugal is experiencing a great dynamism, especially for domestic investors in the housing sector. The properties remain on the market for less time (80% are sold in less than 6 months) and there is an increase in property prices - as a consequence of the lack of real estate stock and the growing demand.
At a national level, the real estate barometer of APEMIP * indicates that more than 90% of real estate sales are apartments (61% in one and two bedroom apartments and 31% in three bedroom apartments). For the Algarve, the figures are slightly different and sales at Casas do Barlavento were divided by 71.5% in apartments and 28.5% in houses, last year.
According with the average prices in the market, the barometer states that "about 55.6% of sales were priced up to €175,000." Comparatively, Casas do Barlavento has only 19.2% of properties priced up to €150,000, the largest share of property sales being between € 151,000 and € 350,000; 16.15% of sales were made above this amount.
All over the country there is an increase in demand for housing by Portuguese families. Until last year the Portuguese market was considered residual, however, now Portuguese buyers reach close to 20% for Casas do Barlavento, surpassing markets like the Irish (10%).
Both Luís Lima (President of APEMIP) and sales director of Casas do Barlavento (Paul Cotterell) consider that in order to meet the needs of demand, it will be necessary to start building again. The truth is that the recovery of the construction sector is already being felt and will be a boost in the economy, creating more jobs, and a way to alleviate the current prices. This will give more possibilities to real estate agencies and more choice to various potential buyers’ budgets.
* Barometer of APEMIP is based on a survey carried out with real estate companies and cross-checking with data from public and private entities.