Categorized | International

Future of Portuguese Real-Estate Market May Be Bleak

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Although Portugal has not dealt with the same housing market troubles that have ravaged its neighboring country Spain, there are many indications that it may face some difficult times in the near future. The most recent reports on their housing market shows rapidly declining demand for homes, and the overall economic outlook of Portugal is not at all promising.

Property prices in Portugal have already started to drop in many areas, and with interest rates on the rise and unemployment expected to soon rise, banks may soon be seeing more delinquent payments on behalf of the nation’s homeowners.

Portugal’s decision to implement austerity measures has played a role in the declining economy, and is one of the major reasons why home sales have already started to drop in number. The plummeting home sales are also due to tighter lending restrictions, and the vast number of repossessed homes being put up for sale by the banks.

Amidst all the potentially bad news, there are some businesses that are seeing greater success. Real estate agencies, which prior to this state of economic turmoil were rarely used, are now being pursued by nearly all the nation’s banks, as they are hoping to get help in selling repossessed homes and properties.

While Portugal has not yet faced the dire situations of other Western European countries, the future does look particularly bleak. With more supply than demand in the housing market, the banks are struggling, and will continue to struggle. The jobless rates are expected to go up, and consumer spending will soon drop. With that negative outlook, it is almost a certainty that housing values will face a decline.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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