Should I be Investing in the Portuguese Housing Market?
Derek Watkins
Abstract Realist Portrait Artist – Revealing the Soul Beyond the Surface Through a Fusion of Abstraction, Emotion, and Light
Should I be investing in real estate
A key question for many during these unprecedented times is what will happen to the world real estate markets, should I be investing and if so where? Seasoned investors will tell you that they make more money during a crisis than during a boom. It is a not a matter of if but what and where you should be investing.
Whist real estate markets rise and fall like all markets, the long term trend in strong markets has always been upward with house prices on average doubling every 7-10 years. Any temporary drop in values should typically be absorbed over the longer term. You only lose out if you are forced to sell during the down cycle with real estate investing being a solid long term play.
If you buy in a strong market with good fundamentals and realistic prices then it could be a good time to be investing in real estate.
One such market is Portugal with annual house price growth of 12% in March 2020. Compared with other established European real estate markets Portugal offers a cheaper alternative with good fundamentals and solid returns. Portugal real estate is currently a third more affordable than the UK.
What has been the impact of the pandemic on the market?
Whilst the number of buyer enquiries dropped so did the number of new listings resulting in the supply demand ratios remaining relatively unchanged. It is over supply that forces prices down and a stronger demand that drives them up. With a flat supply demand curve real estate prices in Portugal have remained stable.
A good indicator of market recovery is the number of online enquiries and compared to last year they are moving in an upward trajectory.
The Portuguese housing market has come on leaps and bounds over recent years. With good fundamentals and attractive pricing compared with the rest of Europes main markets, it may well be a good time to be investing in Portugal.
For further information or assistance with investing in Portugal Real Estate contact me at [email protected]