Residential property prices and rents in Portugal continue to fall due to the very weak demand. According to the Royal Institution of Chartered Surveyors and Confidencial Immobiliario, weak sales are in Lisbon, Porto and Algarve. Over the past year, prices have fallen by 72% of all homes.
In Portugal house prices continue to fall due to the very weak demand, which is related to the deterioration of the labor market, the unemployment rate (16.3%) and a decrease of mortgage lending. General fall in prices and demand observed since December 2010.
National confidence index, which is a composite index based on price forecasts, is up one point from -54 to -53, which is still a fairly negative indicator.
Experts note that the rental sector in the first signs of slowdown. Demand for rental in Portugal declined somewhat. Rental expectations were more negative than before.