Residential property market in Portugal is growing at the highest rate since 2016...
A study advances that 70% of the cities analysed recorded a rise in prices. Luxury rentals grew by 0.5% in the first half of 2021 in Portugal.
In the first six months of 2021, the property market managed to record the fastest growth since December 2016 and 70% of the cities analysed had positive changes, El Economista advanced, based on the Prime Residential World Cities Index by Savills Aguirre Newman.
In view of the subdued industry figures recorded between June 2018 and December 2020, growing only around 0.7%, the report said 2021 contributed to a strong increase in property prices, especially due to low interest rates, the spillover felt in buyers' confidence and economic stimulus measures.
But not all Counties have had the same results. For example, Chinese cities have achieved the highest price increases, with the volume of purchases growing in recent years, as well as investment in real estate. US cities Los Angeles and Miami, which have particularly benefited from telecommuting, favourable local taxes and increased purchasing power, have also seen increases above 9%.
In turn, Paris (France) and Mumbai (India) were the cities with the largest price decreases, damaged by the lower volume of transactions achieved during the past year and by the prolonged closures to which they were subjected. New York also did not come out unscathed and has seen prices decline over the past four years, given the existing oversupply. Still, according to the report, the data points to a stabilisation of the city's figures already this year.
Singapore, Bangkok (Thailand) and Kuala Lumpur (Malaysia) are also other areas that, thanks to an increase in demand and a decrease in supply, managed to recover from negative values. Teleworking and the need for space also contributed to the recovery of values, with repercussions in Dubai (United Arab Emirates), Cape Town (South Africa), Moscow (Russia) and also Lisbon.
Luxury lace
El Economista adds that luxury rents recorded a 0.5% increase in the first half of 2021, after the 1.8% decrease in 2020. Rents, across 39% of cities, also experienced an increase in the first half of this year, compared to 25% recorded during the same period last year.
From January to June 2021, it was also realised that the average yield across the 30 cities in the index was 2.9%, the "tightest" figure identified since Savills began studying this data in 2005.
