Portugal on track for biggest property price rise in Europe

Source: The Portugal News Online  NEWS · 06-09-2018 09:39:00 ·

Strong national and international demand for property coupled with a housing shortage have put Portugal on track for a forecast 9.5 percent rise in property prices this year, which means Portugal, along with Ireland, will be the European country with the sharpest increase in real estate prices, among the 10 countries analysed by the US financial rating agency S&P.

Portugal on track for biggest property price rise in Europe

This forecast, according to a piece by business and economy site Economia Online, is made in the ‘Europe’s Housing Market’ report published on Monday by S&P.
In the report, the agency analyses real estate price developments in Belgium, France, Germany, Ireland, Italy, the Netherlands, Portugal, Spain, Switzerland and the United Kingdom.
S&P predicts only in the UK will prices remain unchanged this year, with increases in all other cases; up until 2021, Portugal will remain among the countries with the highest increases.
As a result of strong demand, both domestic and international, and supply shortages, prices are expected to increase by 9.5 percent this year, slowing down to seven percent in 2019, six percent in 2020 and 5 percent in 2021. This, after last year, having already increased by 10.5 percent, and another 7.7 percent in 2016.
Nonetheless, S&P believes that the Portuguese market “remains affordable”, with “a price-earnings ratio still seven percent below the long-term average”.
In any case, S&P points out, “limited supply coupled with strong domestic and external demand is fuelling house price inflation”.
Bolstering this demand is “robust economic growth, job creation and low interest rates” as well as falling unemployment and “special incentives” such as the granting of gold visas and the programme for non-residents.
In this context, the agency anticipates that Portugal’s economic growth will remain “solid” this year, despite a slowdown compared to 2017, pointing to an increase of 2.3 percent of GDP.
Thus, the Portuguese real estate market should “remain dynamic over the next few years, supported by job creation and increased incomes, as well as by external demand”, S&P concluded.
The gap between supply and demand is also expected to continue over the next few years. This is because the number of properties under construction is increasing, but still small, so it will likely not keep pace with the growth of demand.

Advertisements

A few Interesting facts!

Portuguese are the best English speakers in southern Europe

With tourism reaching peaks of demand from the all four corners of the world, it is not surprising that Portugal is well classified in the ranking of countries that best know English as a second language. According to the English Proficiency Index prepared by Education First, Portugal comes in first place in Southern Europe and 18th worldwide, set at the “High” level of knowledge of the English language.

Tourism weight in economy increases 47% in eight years

According to data from the National Statistics Institute (INE), holidaymakers spent more than €23 billion in Portugal in 2016. Over 28 million visitors entered the country. The number of overnight stays exceeded 144 million. Tourism is growing four times faster than the rest of the Portuguese economy and represents 7% of the gross domestic product.

Lisbon and Porto among the most popular European tourist destinations

Lisbon was the fifth most popular destination for European holidaymakers in 2017, registering a 17% jump when compared to the year before. Porto came in ninth place, 12% above 2016. Registering a 24% increase, London was the first choice for European tourists, followed by Barcelona, Mallorca and Paris.

Source – Nalle.pt

Cowichan Valley Seasonal Contrasts

Different moods for different seasons

IMG-20170626-WA0001

One June evening in the summer of 2017 we were blessed with this awesome sunset whilst sitting on our deck with a glass of wine. We live for the best part of the year in British Columbia Canada, on Vancouver Island in the Cowichan Valley. Our house sits in an elevated position on terraced land with views over lake Quamichan to the mountains beyond.

It is early May now and the last of the snow has melted from the top of that mountain in the photograph, temperatures here are warming up with averages of about 15 or 16 deg C and highs of 24.

By contrast here is a photograph of the same view in winter.

DSC_2365

And here is an early morning summer photograph not a breath of wind.

DSC_1080

And by way of even more contrast an early morning autumn mist covers the lake.

DSC_1079

Same view but different moods for different seasons!

Strange Aloe type plant near the Villa

In the small lane that leads down to our villa this Aloe type plant is just growing wild at the side of the road. We had never noticed a plant growing there but now it is flowering it is very noticeable, the flowers are opening up from the bottom a few more inches every day. To give a perspective the flowering part is about 6-8 foot long.

We suspect that a seed has been dropped by a bird and taken root. We have not seen one like this on our travels  in Portugal or Spain so wonder if it has come from Morocco and the Sahara. If any one knows more about this mysterious plant please let me know.

The trees in the back ground, by the way, are Cork Oaks. The cork has been stripped off part way up the trunk. When the cork has been stripped the trunk underneath is dark orange but turns black after 6 months or so. The cork will grow back and be ready for stripping again after a minimum of  9 years.

Where is the cheapest place in Portugal to live on a pension?

Anywhere away from cities and industry. Small villages and towns that are a few hours drive from major cities will be the cheapest places to live. Property prices and property taxes will be low and the cost of food if bought at the local markets low too. You may have to make a longer journey now and then to a larger town to stock up on certain items and fill your car up with cheaper gas. Property for sale

Alentejo towns and villages would be a good starting point. If you prefer a warmer climate in winter then the Algarve would be suitable but stay away from the coast and look inland, have a look at places like Alcoutim, Salir, Alte, Sao Marcos da Serra, Alferce, Monchique, Rogil, check out this site MonchiquePortugal.info

Shops in MonchiqueIf you are prepared to live sensibly, grow some of your own fruit and veg, have a few chickens, do without too many trappings you can make a pension go a long way. Much depends on where your pension comes from of course. Portugal has to be one of the most affordable countries in Europe in which to live.

Read Nigel‘s answer to Where is the cheapest place in Portugal to live on a pension? on Quora

Portugal Leads Europe in Healthy Food

An article recently published in the UK’s Daily Mail makes for uneasy reading. Unless you are Portuguese that is, who lead the healthiest of (eating) lifestyles in Europe.

The map below compares Ultra-processed foods as a percentage of household purchases. “Ultra-processed products account for 50.7 per cent of food bought by Britons, Germany came second with 46.2 per cent, followed by Ireland on 45.9 per cent. Lowest was Portugal with 10.2 per cent.”

You will see from my other blog posts and from what I say on our villa website that I strongly support the opinion that Portugal has some of the best food in the world. This article helps supports this opinion because the Portuguese do use natural products and so do most restaurants. We are blessed with many restaurants in our area that serve the most amazing dishes all made from fresh local produce. If you need a whet your appetite fix just follow this link.

 

05F_PROCESSED FOOD map

If you came on holiday to Monchique for say two weeks, even if you ate out in a restaurant every day you would be hard pressed to try all the best dishes, here is a list of my favourite main courses, in no particular order.

Grilled Chicken Piri Piri, Wild Boar with plums, (or chestnuts) casserole, Black pork steak, Black pork cheeks casserole, Chicken with cherries casserole, Pork and Prawn Cataplana (casserole), Grilled Dorada (fish), Grilled lamb chops, Roast kid, Pork with clams Alentejana, Seafood Rice, Mixed kebab, lamb stew, goat stew.