Property in Portugal - prices have fallen
For the first two months of 2012 real estate prices in Portugal declined. The main reason for this was the country's economic problems and low demand for these assets.
Studies have shown that the main problem of the Portuguese real estate market is the low demand for residential and commercial real estate. Experts believe that as long as economic uncertainty in the country continues, property prices will remain at low levels. This situation gives foreign buyers ample opportunity. There are many good investment properties in the Portuguese market now with a good discount.
But some parts of the country managed to keep property prices from falling sharply. An example of this is Lisbon, some other major cities. Conversely, in some resort areas, for example in the Algarve, the situation is much worse than in the whole country. Market researchers believe that the main reasons for the low demand for real estate are problems with Portuguese debt, high unemployment.
The state of the property market in Portugal can be assessed as depressive. And expect in the medium term further price reductions. Although there are some positive trends. Recent events in the Middle East and North Africa are forcing investors to abandon real estate purchases in these countries and choose safer countries for investments, such as European Portugal.