I had to laugh (well, not laugh but you'll know what I mean) at the latest report into the Portuguese property market by the Royal Institute of Chartered Surveyors. The report basically breezed over the fact that all indicators were negative, because it is also reporting on a rental boom. It says:
"The October RICS/Ci Portuguese Housing Market Survey (PHMS) shows a further deterioration in demand, supply, confidence and prices". Demand, supply, confidence and prices; all indicators are negative, but, as it goes on to say, the scuttled property sales market is fuelling a rental boom across the country.
"[The rental market] appears to be benefiting from ongoing weakness in the sales market. At the national level, demand for rented property and new lettings instructions both increased sharply, though rents declined. Respondents expect further falls in rents but continued strong rises in lettings volumes."
It is likely no coincidence then,that this is the first RICS Portugal index, which is done in conjunction with Confidencial Imobliario, to cover the rental sector as well as the sales sector.
I feel a little bit sorry for Portugal. It never really had a boom, and there was certainly no bubble, but when the crash banged, Portugal popped just like the rest of us. Its public debt levels are now a noose around its neck as it struggles to find a way back to growth. There are bargains for sale in the country, but few have the confidence to buy until the Euro crisis is resolved/
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