Caixa Geral de Depositos, the largest banking and insurance group in Portugal, recently released a study entitled The Present State of the Residential Real Estate Sector that brings good news for the Portuguese real estate sector.
As matter of fact, the lack of a real estate bubble has put Portugal, on par with Germany, as one of the most resilient countries in terms of housing prices.
As shown in the graph below, the downturn in prices, as compared to the peak price, was almost inexistent in Germany and Portugal, whereas, at the other end of the spectrum, we have as an example a slide of over 30%, as is the case of Ireland and the USA.
Also recently, the OCDE identified Portugal and Germany as the two countries of the Euro Zone where real housing prices did not “accelerate” significantly since 1980, but instead, enjoyed a sustained and healthy growth. In stark contrast, directly prior to the sub-prime crisis, we have seen markets such as Spain and France with 50% price increase over a three year period, 40% in the USA, and 30% in the UK and Ireland.
The study also cites a report by the IMF which estimates the over-inflation of housing prices of 30% in Ireland, 20% in the UK, 10% to 20 % in France, Spain, Holland and Greece, and 7% for the USA. Again in contrast to the afore-mentioned markets, the IMF concluded that no such over-inflation was present in Germany and Portugal.
Portugal was not affected by the over-development of residential real estate as seen, for example, in Spain and Ireland where that excess offer is now driving the prices down.
Portuguese real estate prices are stable, given the equilibrium between offer and demand, allowing one to conclude that they will continue to grow at a moderate, sustained and healthy pace in the future.
As it has now become an annual tradition, the Obidos Vila Natal will be held within the confines of the century-old Obidos Castle between Dec.8th and Jan. 3rd and Quintas de Obidos Country Club is, once again, proud to associate itself to this event. Focusing on family entertainment and amusement for kids of all ages, Vila Natal promises to bring the Christmas magic alive and put the spirit of Christmas into the hearts of all who visit.
Costa de Prata’s horse-friendly trails, top, and built-to-order villas, above, are popular with the UK horse set, such as the family of Zara Phillips, left.
