The real estate market in Portugal enjoyed a first-half 2020 virtually unchanged from last year, despite the pandemic. Despite the covid-19 crisis, real estate activity remained virtually unchanged compared with the first half of 2019. In addition, the average price of homes sold increased by 8 % still compared to the same period last year.
Portugal's real estate market takes 8 %
In the first six months of 2020, the real estate market in Portugal recorded sales of over 19 million euros, slightly down on the 20.5 million recorded in the same half of the previous year. In terms of sales, this represents 800 million euros, or around 7 % less.
The main reason for this drop was the interruption of purchasing processes from March to May, following the containment. However, in June, the dynamics of demand, trading and transaction execution have already reached, practically, the same levels as those of 2019.
The average value of the real estate market in Portugal rose by 8 % in the residential property market, and sales figures are not very elastic, which should prevent price falls.
Rental market on the decline
At the same time, the market rental, rents are set to fall, as supply has to adapt quickly to the disposable incomes of young people and families. At the start of the year, the average rent was 893 euros, and by way of comparison, the average rent in April, May and June was around 772 euros, representing a 13.5 % drop in the average value of rents in the second quarter.
Experts believe it is impossible to anticipate the specific impact the pandemic will have on the real estate sector. However, they stress that the market is "resilient and stable" and that any negative impacts will be temporary and short-term. In their view, the segment most affected will be international demand, while anticipating the transfer of ownership from local accommodation to traditional rentals.