|Investment Property Worldwide.com||
Demand for rental properties in Portugal is growing as more Portuguese nationals are forced to rent rather than buy, due to a lack of mortgage liquidity, presenting potential buy-to-let investment opportunities for shrewd property investors.
The latest Portuguese Housing Market Survey from the Royal Institution of Chartered Surveyors and Confidencial Imobiliário (CI) shows that the country’s rental sector is benefiting from ongoing weakness in the sales market.
Ricardo Guimaraes, CI Spokesman, said: ‘Tight credit conditions are pushing both
households and home owners to the rented sector. Households can’t access
mortgage finance to purchase a house and therefore home owners in most cases
can’t sell their house. This is resulting in sharp increases in both the demand for and supply of rented accommodation.”
A further bonus for anyone thinking of buying property in Portugal is the fact that residential property prices in the country are falling due to a lack of activity in the sales market, presenting investors with opportunities to negotiate significant property price reductions.
Josh Miller, RICS senior economist, said: “Although sales volumes in the housing
market continue to fall, volumes in the lettings market are booming at the
moment. This is because households who cannot access mortgage finance are opting for rented accommodation instead.”
He added: “Given the deteriorating macro-economic backdrop and tightening in credit conditions that is already underway, the lettings market is therefore likely to
continue experiencing high volumes of activity in the near term.”
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