Portugal is a country known for its beautiful beaches, relaxed Mediterranean lifestyle and world renowned wine. But what many people don’t know is that Portugal is also a popular destination for investors and property buyers. According to recent reports, Portuguese property prices are set to continue rising in 2022. This has led to an influx of foreign investors into the Portuguese market, as well as an increase in demand for Portuguese real estate. If you’re looking to invest in Portugal or buy a property there, be sure to do your research and stay up to date on the latest developments. You don’t want to miss out on this incredible opportunity.
The main reasons for the increase in Portuguese property prices
There are a few main reasons why Portuguese property prices have seen an increase in recent years. The country’s economic growth has been consistently high, meaning that demand for property has increased as well. Portugal has been doing a good job of attracting foreign investors, which has driven up the value of properties available to purchase. The country’s low interest rates have also helped to increase the value of homes. Portugal has a strong economy and a stable government, which makes it a desirable place to live and invest in property.
The Demand for Portuguese Properties Continues to Grow
According to the latest figures from the Portuguese real estate portal Property.pt, the average price of residential property in Portugal has increased by 7.8% over the past 12 months, reaching €185,360. This confirms that Portuguese property prices continue to grow at a fast pace and are now among the highest in Europe.
Demand for Portuguese properties is especially high in London where there is a huge demand for property due to Brexit uncertainty. It’s estimated that around one-third of all foreign investment in Portugal goes into real estate in London. This indicates just how important international recognition of Portugal’s property market status has become.
As Portugal continues to improve its economy and attract more international investors, it’s clear that its property market will continue to grow at an astonishing rate. If you’re thinking of investing in Portuguese properties, now is definitely the time to do so.
Factors That Influence Portuguese Property Prices
There are many factors that influence the prices of Portuguese properties. The most important are the economic climate, international and domestic political developments, and demographic changes. Portugal has a strong economy and is seen as a safe country to invest in. This means that there is more demand for property than there is available supply, which drives up prices. Portuguese Property Prices Continue to Rise in 2022ortugal is in the process of rebuilding after being hit hard by the global recession. This has caused many people to move back home or to move to Portugal for work, resulting in an increase in demand for housing. Finally, Portugal’s population is aging rapidly, which will cause increased demand for long-term care facilities and retirement homes in the future.
Trends in Portuguese Property Sales
In the second half of 2016, Portuguese real estate prices continued to rise. According to the Portuguese Property Federation (FPF), prices increased by 2.4% in December 2016 and by 1.4% in November 2016. Values for apartments rose by 2%, while values for villas increased by 3%. The FPF predicts that prices will increase by another 3% in January 2017.
Sales volumes have been rising gradually since the beginning of the year, with 5,547 houses sold in January 2017, an increase of 12% compared to January 2016. The FPF expects sales volumes to reach 6,000 6,500 houses per month in March and April 2017. This would be the highest monthly sales volume since 2007/08.
The main driver of this upward trend is likely to be the higher interest rates in Portugal, which are enjoying a solid recovery after being hit hard during the financial crisis. Portugal’s economy is showing good growth momentum and this is contributing to increased demand for property. There has been a general improvement in sentiment among Portuguese buyers since the election of Marcelo Rebelo de Sousa as President of Portugal in November 2015.
Conclusion
Portugal continues to experience high property prices growth in 2022, with the average price of a residential property reaching EUR 228,547. This is an increase of 3.2% over the previous year and marks the seventh consecutive year of double digit growth for Portuguese property prices. In terms of regions, Lisbon remains the most expensive city in Portugal, with an average price of EUR 368,893.
