Lack of supply is driving up property prices in Portugal

An imbalance between demand and supply is continuing to drive strong price growth in Portugal’s residential property market, the latest housing market survey suggests. A similar picture is depicted in the lettings market, where rents continue to rise firmly on the back of solid tenant demand and falling landlord instructions, according to the October trend report from the Royal Institution of Chartered Surveyors (RICS) and Confidencial Imobiliário. Overall, new buyer enquiries remained unchanged in October with the net balance coming in at just -2%. This follows a broadly flat underlying trend in demand over the past few months, notwithstanding the 21% net balance reading in September.