Real Estate Market in 2022
House sale prices in Portugal rose by 18.7% in 2022, the highest increase in decades, according to Confidencial Imobiliário's Residential Price Index.
It is necessary to go back to 1991 to find a year-on-year rate of change at the end of the year that was higher than the one recorded last December.
Following the news presented by Diário Imobiliário, we asked our opinion to our CEO and Founder of Imobiliare Realty Advisory Diogo Resende and in his opinion this factor is due not only to foreign investment increasingly present in our market but mainly to a greater demand than supply in the residential market and an almost null supply in the rental market at prices that continue to offset the purchase of housing, this fact must be taken into account even with the predictions of decline or stagnation predicted for the year 2023 by some analysts due to sudden rises in interest rates.
It also recalls that several analysts predicted sharp market declines in 2020 due to the Covid 19 Pandemic and this was not reflected, on the contrary.
Unlike the property crisis felt from 2008 to 2014 you have to consider demand greater than supply, the fact that families continued with their jobs which was not the case in that period, bank financing since that time has never been higher than the 90% of property valuation and there being no alternatives in the rental market which at that time was abundant.
In this sense, it is the opinion of the same that there could be a slowdown in rises in the first quarter of 2023 and a probable stagnation in the rest of 2023.
