The Portuguese property market might be becoming more competitive but when it comes to lettings, conditions remain flat. Figures from the Royal Institute of Chartered Surveyors (Rics) and Confidencial Imobiliario show that January saw a pick-up in buyer interest, but lettings activity was relatively stagnant, Property Wire reported. Indeed, tenant demand rose just marginally and landlord instructions declined for the fourth consecutive month.
Rents have also dropped off, meaning would-be landlords are likely to hold off on property purchases. According to Rics and Confidencial Imobiliario, in the short-term conditions are unlikely to improve, the news portal revealed. With just a slight rise in lettings activity expected in the foreseeable future, it's unsurprising rents are going to temper.
Yet broadly, the property market is improving, which bodes well over the long-term. Indeed, in the sales market volumes are stable and new-buyers have seen a sharp rise. The national confidence index now stands at 16 from 6 - the best reading since the survey began. This also makes January the third consecutive month when a positive reading has been recorded, Property Wire explained.
RICS senior economist, Josh Miller, told the news portal that the results indicate that interest is returning to the market. However, it's important people don't get ahead of themselves. " For the moment however, there is little sign of this filtering through into prices, " he said. " The recent GDP figures also portray an upbeat message although the recovery still has a way to go until it is firmly entrenched. "
The Golden Visa scheme is likely to bolster activity in the buyers market over the coming months. A report from Portugal-based estate agent APEMIP showed through the scheme, the property sector could bring in €600 million (£492 million) to the Portuguese economy. There is likely to be a rush on Golden Visa applicants over the coming months too, as buyers try to escape inevitable price rises and pick up a bargain.