Portugal Makelaars

The lettings market in Portugal appears to be benefiting from restricted lending to potential buyers, as more people are turning to rentals rather than purchasing their own home. This is the finding of the latest Royal Institution of Chartered Surveyors (Rics)/Ci Portuguese Housing Market Survey for December 2011. According to the research, the demand, supply and the price of homes in Portugal have all continued to fall, while the rental market has grown thanks to the difficulties faced by domestic buyers in raising finance to purchase a property. However, this has created opportunities for investors, who are in a position to take advantage of the strength in the rental sector and pick up real estate assets at lower prices, the report added. Senior economist at Rics 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." Earlier this month, Cushman & Wakefield predicted there will be little change in Portuguese real estate in 2012, although noted there is likely to be a higher transaction volume over the next 12 months due to forced sales and banks looking to offload some of their property stock.