As prices are cooling down, investment opportunities are rising
64% of Portuguese Municipalities are experiencing flattening or cooling prices.
With the upcoming conclusion of moratoriums conceived by the Portuguese Government, the real estate market is set to reduce prices in the next six to nine months, consultants are claiming. These moratoriums, which, for example, postponed the payment of interests on the most affected business areas by the worldwide Covid-19 pandemic, were created as a set of measures to prevent a greater economic crisis which would directly jeopardize the real estate market. Specialists stated that, without those moratoriums, most of the investment promoters would not be able to subsist, creating a supply chain brunt that would harm Portuguese Golden Visa Program and its investors.
But those moratoriums were designed to end and let the market flow normally as soon as possible, starting this year, and that cease was expected to create the event of flattening and, in many cases, cooling prices. These mentioned flattening and cooling prices will be mostly felt in the apartment sector, as already noticed in 64% of Portuguese Municipalities. While in the apartment sector the expected prices slowdown will be around 58%, in the houses and villas sector, the foreseeable prices slowdown will not be above 29%.
For investors, this is a perfect opportunity to grab. Even more competitive prices will show up soon in the apartment sector, with Lisbon set as a great example of a city where you can expect to find some great real estate investment opportunities.
While moratoriums will all come to a closure, supply will surpass demand and, naturally, the prices will fall, as declared by Manuel Braga, one of the many Portuguese real estate players that are carefully managing these changes. “2021 is set to be a key year for Portuguese real estate business” Manuel Braga said.