Not only are house prices set to rise in the Algarve, the number of sales is predicted to increase, according to the crystal ball at the Association of Professionals and Real Estate Companies (APEMIP) head office.
Lisbon, Oporto and the Algarve will see rises of up to 3% over the next 12 months with APEMIP trying to promote "market confidence" with positive press releases.
The 2% to 3% rise has been taken from opinions expressed in the ‘Portuguese Housing Market Survey’ by 150 real estate companies.
The respondents also guess that there will be a rise in the volume of property sales of between 35% and 40%, a higher figure than last year’s increase of 27%.
Luís Lima, president of APEMIP believes that foreign investment sets the tone for installing confidence in buyers. "In every 5 transactions, one is made by a foreigner and this creates a climate of confidence which helps the domestic market," said Lima, while not explaining how this works.
Luís Lima warned that housing prices will not rise much above the 2% to 3% predicted as he does not want to see the sort of ‘speculation’ witnessed in 2002 and 2003, although his members wouldn't mind at all.
APEMIP sagely points out that the Algarve, Lisbon and Oporto do not represent the entire country and that many houses remain unsold, especially in inland areas.
The president of the association also criticised a mooted increase in property transfer tax (IMI) for second home owners. This measure is being considered by the Government but Lima says the move would be "a tragic mistake."
A glimmer of sanity was visible in some of the country’s bankers today as they agreed that 100% mortgages "may not be the best way forward."
A meeting in Torres Vedras saw several bank chiefs agree that "banks will not increase funding rates up to 100% as before, because if it did it would be irresponsible."
This statement was agreed by financial luminaries including Miguel Costa (BPI), Carlos Vintém (UCI), Vítor Peixoto (Novo Banco) and António Ribeiro (Santander) at a real estate meeting.
These bankers were unanimous in their agreement that mortgage customers “will have to have more equity" to be able to have their applications approved.
Have we learned so very little….
Comments
It is not surprising that we see so many agents and lawyers around when we see what they can earn but hey this Portugal and it seems endemic,top to bottom!
Then factor in that we now know that the Portuguese VIP's were getting this offer on their mega expensive developments but WITHOUT ANY SECURITY ie the paperwork for another property anything they held of value. Which the ECB is well aware totally undermines the point of creating a Portuguese bad bank to hold all the unpayable or bad loans. In essence the loan never happened. Portuguese banking !