14 January 2020
English
Although we are living in different times than we are used to, the real estate market in Portugal has been recovering, continuing to remain a good option for real estate investment.
The arrival of the Covid-19 pandemic in Portugal brought several changes in the demand models of the real estate sector . These are new trends that have already been manifested in the requirements and desires of those looking for a property to buy. In the real estate business , some of these trends have come to last.
In the last months of 2020, there was an increase in the demand for houses and houses compared to apartments . This is a consequence of the health crisis and the period of social confinement .
The families decided to invest in real estate with larger spaces, which allow a wider movement and which include, for example, gardens, terraces, balconies, as well as versatile and functional spaces, which include areas dedicated to teleworking or sports.
In addition, the potential buyer has come to give more value to “home real estate” and the importance it assumes in everyday life. The demand for housing has been more expressive outside large urban centers, this is because there is a greater variety of properties and prices are also more accessible.
Another of the growing trends in the real estate market, and which emerged with the emergence of the pandemic in Portugal, is the increase in demand for real estate such as land or plots for construction . The limited supply of housing in city centers has led families to start looking for alternatives in the peripheries.
In the real estate sector, land for construction has been a very viable option and selected by the client , as it allows to build a dwelling according to what they want and in the desired location. A trend that has been registered mainly in the coastal region of the country and that demonstrates the buyer's willingness to build a house with specific characteristics, which until recently before the pandemic appeared, were not so valued when describing the favorite property .
In the property rental market in Portugal there are also significant changes. With the uncertainty that we are experiencing in relation to the tourism sector and the lack of foreign tenants , it has stimulated the conversion of properties from local accommodation to long-term rental.
At this time, the properties of lesser typology are those that may suffer the most reductions, since they are the type of housing that the owners of local accommodation will want to sell or pass on long- term lease agreements .
Although we are experiencing an atypical year, the property market in Portugal has been recovering , continuing to remain a good investment option. Portugal continues to be sought after by foreign investors, who continue to be interested in the country, in the benefits it offers and in the wide real estate opportunities that exist all over the country.
It is difficult to assess the behavior of the real estate market in the near future.
Although it is difficult to accurately predict the development of the real estate market in this exceptional period, it is assumed that house prices in Portugal are expected to fall slightly this year but will rise again in 2021.
The markets in Portugal and Spain are also very oriented towards the tourism industry compared to some countries in Europe. With the COVID-19 pandemic, the very low influx of tourists in 2020 and the high uncertainty about the health situation in the future, negatively affected demand and house prices .
The confinement because of Covid-19 boosted the importance of the home, becoming the epicenter of people's lives , in various dimensions. The new trend in demand for larger properties compared to smaller houses is expected to be maintained.
Now, families spend more time at home and having to work from home, they reassessed their need for real estate.
However, a clear shift in favor of rural areas, away from large cities , is not expected . Even though, in the current context, living in a larger house in the countryside seems to be more attractive , buying a mobile i is a long-term investment, and other considerations such as the labor market, schools, public infrastructure and leisure offerings still have a important role when choosing the place to live.
If you want to buy or rent a house, talk to the real estate consultants at Imobiliária Buy House Portugal.
These will help you choose the house that suits your needs in the real estate business, the house that has space for children to play and gather the family or simply that has an area to set up your home gym. Contact Buy House Portugal!
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