Categorized | International

Portugal Housing Market Hit Hard by Economic Woes

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As Portugal’s economy continues to weaken, so, too, does its residential real estate market. Housing prices fell significantly during the month of September, largely due to a massive decline in demand. While other nations have been trying to cope with an excess supply of housing, Portugal is actually facing an entirely opposite scenario.

Portugal does not have an abundance of residential properties on the market. Rather, it is coping with a double-digit unemployment rate that is due in part to a very weak job outlook. The high unemployment rate has played a major role in the reduction of overall demand in the nation’s housing market.

While the weakened demand and poor economy certainly present Portugal with a difficult situation, there still appears to be light at the end of the tunnel. While nations such as Spain and Ireland will have to address not only the economy, but also housing supply issues in order to begin a successful recovery, Portugal need only worry about the economy and job creation.

Once Portugal’s economy and job outlook improve, many international residential real estate experts believe that the housing market numbers will also improve. The current demand among potential homebuyers remains depressed largely due to the fact that many of them fear the possibility that they may not have a job in the coming months. Job uncertainty has led the greater majority of homebuyers to delay their decision. There have been no signs indicating when an economic recovery will take place in the country, though residential real estate analysts are upbeat that when it does, in fact, take place, the housing market will finally see improvement.

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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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