The average price of property rocketed by 15.4% in the space of a year in Portugal. But while real estate continues to result in relatively decent profits for sellers, new data also indicates that their expectations of the property’s worth and its actual selling price have widened further this past year.
Expectations in Portugal are usually that a potential buyer of property will offer less than the price listed by the seller.
A decade ago, prior to the economic crisis, the so-called buyer-seller expectation gap stood at around 10%. But since the onset of the well-documented property market boom, sellers appear to have even greater unrealistic prospects of their property’s actual value. In Lisbon, this differential between buyers and sellers has now climbed to 22%, while in Porto, this figure has risen to as high as 30%.
These figures were calculated by real estate market analysts Confidencial Imobiliário (CI), throughout comparing declared values once property deeds are signed against values contained on the Residential Information System, showing listing prices.
Other figures published a few days earlier showed that average property prices in Portugal ballooned by 15.4% in the space of 12 months leading up to December 2018.
Accumulated increases since late 2013, now stand at 46% CI said, yet sellers now appear to have an even greater distorted perception of the market values of their property.
However, this is far from meaning that we are seeing the end of rising property prices in Portugal, only at a more sedate rate. A view that is further substantiated by the recent Portuguese Housing Market Survey, from CI, which found that prices are set to start levelling out, though maintaining an upward curve.
Meanwhile, rental properties have also continued to record price increases, and rose by 37% in 2018 when compared with the previous year. The average rent in Portugal currently stands at €1,106/month. The five districts with the highest average rental prices in 2018 are Lisbon, Porto, Faro, Beja and Setúbal.
Original Story:The Portugal News | Brendan de Beer
Photo: FreeImages.com/Hugo Humberto Plácido da Silva
Edition:Prime Yield