Residential market operators expect that once the Covid-19 outbreak is under control, sales will take about 12 months to return to pre-crisis levels. As for prices, expectations point to a recovery in a period of 14 months, reveals the Portuguese Housing Market Survey (PHMS) of March. This sentiment survey carried out monthly by RICS and Confidencial Imobiliário posed, in March, two additional questions related to expectations of a recovery in sales and prices in the residential market in the current context of the pandemic.
The views of Confidencial Imobiliário and RICS
For Ricardo Guimarães, director of Confidencial Imobiliário, “it is natural that short-term expectations are low, reflecting the uncertainty about when this Covid-19 crisis will end. This is a critical factor, for health and economic reasons. Even so, opinions about the post-crisis period are less pessimistic and anticipate a recovery within 12 months after the outbreak is under control. Some operators note that a market slowdown was already taking place, motivated by legal changes to the regimes. Non-Habitual Residents and Gold Visas. However, there is a global perception that the recovery will depend a lot on the extent that this crisis will have on the economy and on the impact on household income and on the availability of companies to return to invest. ”
For Simon Rubinsohn, Chief Economist of RICS, “the decline felt in current activity indicators as well as future expectations clearly reflects the emergency measures taken to limit the spread of the coronavirus. Feedback also suggests that the legacy of Covid-19 may be such a dimension, that any return to what may be called “normality” in the economy will take time and that families will remain cautious for a long time as well. ”
Source: Diario Imobiliario 04/13/2020