Price houses in Portugal continue to fall, study reveals

Brits looking to invest in a property overseas that they can use as a second home may want to consider making an online money transfer to Portugal.

According to the latest report from the Royal Institution of Chartered Surveyors (Rics), prices in the nation are continuing to fall, which means individuals may be able to purchase a bargain.

The December Rics/CI Portuguese Housing Market Survey assessed the sales and lettings sectors, revealing demand, supply and prices in the sales market remains subdued.

It was found the National Price balance moved from -70 to -66, although activity in the sector fell at a slower rate than in November.

Investing in a second home in Portugal could also help individuals to increase their monthly income if they intend to rent out the abode when they are not using it.

Tenant demand was noted as remaining high, with lettings expectations recording a sharp jump and positive growth.

CI spokesman Ricardo Guimaraes said: "Some agents note that there is increased transaction activity from investors, who are benefitting from price reductions and a strong lettings market."

Outside of Lisbon, rental levels were recorded as stable in Porto and the Algarve, while lettings volume expectations are also the highest in these locations.

Rics senior economist Josh Miller commented: "The weak labour market and uncertain economic outlook in Portugal is forcing potential homeowners into the lettings market, which is showing robust demand and strong transaction expectations."

He added this trend is predicted to continue throughout the rest of 2012, as mortgage finance in the country remains "constrained".

Elsewhere, Spain was recently notes as having plenty to offer property investors, with many bargains to be found, according to Below Market Value property specialist IPS.

Posted by Thomas

Smith

Click here to make an International Money Transfer to Portugal.