Mediators: Portugal away from the bubble in the real estate market
The leaders of the real estate companies REMAX and Porta da Frente have assured today that there is no prospect of a real estate bubble in Portugal, given the consolidated market and the current recourse to housing loans.
“We are far from the bubble,” said Rafael Ascenso, director general of the Porta da Frente, noting that this artificial overgrowth is linked to mortgage lending and that in 2016 “95% of transactions were made without recourse to financing.”
He pointed out that there is an increase in housing loans, both for foreign clients and for Portuguese, but “far behind” in the past.
“Promoters are also working with equity that did not happen before 2008. The paradigm has changed,” he said.
Manuel Alvarez, president of REMAX Portugal, quoted in a statement, indicated that he was not “going through a pre-bubble period” and saw a “healthy and moderate” market growth of around 3%.
“I believe that in the coming years we will continue to see sustainable growth in real estate prices and transactions, in line with what is happening in any dynamic market. On the other hand, the data that we have access points to a trend increase in rates Of interest, caused by European economic growth, which will ultimately limit the prices of housing, ” he said.
In the first half of this year, the company opened 11 new branches and had an increase of 520 agents.
REMAX carried out almost 16 thousand sales transactions and more than 5 thousand leasing transactions, having registered higher demand in Sintra, Almada and Amadora.
Rafael Ascendo, at the Cushman & Wakefield ‘Marketbeat’ show, with which the Front Door collaborates, noticed similar prices in the medium / high and high markets in Lisbon and Cascais, while in Oeiras there are An “intermediate” registry, being an area that is being discovered.
In Lisbon, the Portuguese are reported to return to the center of the city, particularly cases of families whose children have become independent and are now looking for smaller houses and “neighborhood life”. There is thus increasing demand in the traditional neighborhoods of the capital.
The official also underlined the return of the Portuguese, since 62% of real estate transactions in 2017 involved foreigners, while that number reached 85%.
“The market is consolidated,” commented Rafael Ascenso, referring to the accumulation of nationalities in the residential market.
The same source predicted “some growth” of prices, in a scenario where there are projects to balance demand and referred to negative consequences if values climb much.
“We will stop being competitive with other European cities, which motivates investors.”
Lusa e Jornal de Negócios 25 de julho de 2017 às 15:52