April, real estate market accelerates

This week the confirmation came from one of the most prestigious magazines Ci - Confidencial Imobiliário, which, in partnership with the RICS (Royal Institution of Chartered Surveyors), released the numbers of the April survey of the Portuguese Housing Market Survey:

• The April 2016 RICS / Ci PHMS results point to an acceleration in the increase in house prices; with the indicator achieving the highest result since the survey was launched in 2010;
• Demand grew at the highest pace in the last seven months, with Lisbon once again leading the most significant rise;
• The placement of properties on offer increased for the fourth consecutive month ;
• Respondents anticipate an increase in house prices of around 3% for the next 12 months. Furthermore, they expect the pace of growth to accelerate, reaching an average of 4% per year for the next 5 years.
• The Algarve is expected to lead the biggest gains, in the order of 4.5% per year , while the outlook for Porto is slightly more modest, standing at 3.5%.
• The national confidence index rose from +26 in March to +38 in April.
• In the rental sector, demand for potential tenants has grown at the fastest monthly rate since October 2011 ;
• Rents increased for the eleventh consecutive month and expectations point to a further acceleration over the next three months.

This survey is used in the elaboration of the Trust and Expectations Index in the Real Estate sector (which has existed for over 20 years and measures the appreciation of residential properties) and is based on a panel of 150 real estate promotion and mediation companies in the Lisbon regions, Porto and Algarve.

According to Ricardo Guimarães , Director of Confidencial Imobiliário:

“The increase in household demand for housing is being driven by credit growth . New loans reached 491 million euros in March, more than doubling within a year . At the same time, spreads are declining and banks are taking a more aggressive commercial stance, facts that are having clear effects on prices and expectations. ”

According to Simon Rubinsohn , RICS Senior Economist:

“Although the acceleration of the Portuguese economy remains modest, consumer confidence remains close to the post-crisis highs . This, together with weak monetary policy, should continue to support the recovery of the housing market. ”