Portugese property values increased slightly in June but year-on-year prices are continuing to fall. According to data from Statistics Portugal, the average value of housing bank appraisals stood at €1014 (£885.49) per square metre last month. This is a rise of 1.8 per cent from May, when there was a change rate of 1.2 per cent. However, over the year, values fell by 2.4 per cent. While this is lower than the five per cent year-on-year decline in May, it's still disheartening to investors.
In Lisboa and the Porto Metropolitan Area, the average property value increased 2.5 per cent and one per cent respectively month-on-month. However, year-on-year change rates leave the areas with 3.2 per cent and 2.1 per cent declines.
Like Spain, it seems Portugal will have a long road ahead for recovery, although the situation in the latter is arguably less dire. There also continues to be considerable interest in the country's property market from foreign investors. In May 2013, the Organisation for Economic Co-operation and Development named Portugal as one of the most favourable countries in the world to own property. Real estate is undervalued in the country and the price-to-rent ratio is certainly appealing. Historically, homes in the country are now seven per cent cheaper and rents are 13 per cent more favourable for landlords.
This is a fact Chinese investors are all too aware of and it seems buyers are poised to pour billions of euros into Portuguese real estate. In June, Fine & Country Cascais reported Chinese buyers generated €25 million (£21 million) in just 2.5 months that would otherwise not have existed. This is part in thanks to the country's residency scheme for non-EU nationals buying property in the country. By investing €500,000, foreign nationals outside of the European Union (EU) are able to live in Portugal under a five-year temporary residency permit. After five years, it is then possible to apply for permanent residency.
Article created on behalf of Propertyshowrooms.com News Desk (http://www.propertyshowrooms.com/news/)