Housing Demand Slowdown in Summer

According to the monthly survey by Confidencial Imobiliário, the property market in Portugal has suffered a slowdown which may be due to the shortage of real estate on offer, the increase in prices or not being able to buy in the areas that potential buyers are looking for.

The truth is that for almost a year and a half there has been a steady decrease in the number of properties listed, which reinforces this trend. Potential clients are more cautious because of property prices, but also due to the recent legal changes in real estate and leasing activity.

Furthermore, the Portuguese Housing Market Survey (PHMS) reveals that housing demand still continues to grow, but at a more moderate pace since December last year. Which means, economic and confidence indicators remain strong, even with this activity slowdown.

It may seem contradictory to housing demand to have a purchase decrease in the summer when it is the high season for tourism in the Algarve. However, it is a common real estate market trend: "it was like that this year and also in the previous years, even in the Algarve", mentions Ricardo Guimarães, Director of Confidencial Imobiliário.

"The summer months are the most desired months due to time off work. For people to come and relax with their family with no worries or commitments. Mixing their holiday time and viewing time doesn’t work. If they are meant to buy a house, they will do it in the quieter months of September, October and November which is the real estate high season, "says Paul Cotterell, Sales Director of Casas do Barlavento.

Housing demand may have declined in the summer, but now it is once again experiencing solid market growth in the Algarve, confirms Casas do Barlavento. If you are interested in selling your property, this is the ideal time to get in touch with us. The best time of the year has arrived!