Commercial Finance Specialists

Property prices in Portugal continue to decline.

Commercial property investors could be looking to Portugal for their next purchase after it was reported that prices are continuing to fall in the country.

The Royal Institution of Chartered Surveyors (Rics) revealed that property investment costs are dropping at a rapid pace in the European nation.

Its March 2011 Rics/Ci Portuguese Housing Market Survey showed that the national activity index dropped by two points to minus 26, while the national confidence index in the property market declined by 22 points to minus 51.

Rics senior economist Josh Miller said deteriorating confidence, dropping activity levels along with falling prices can characterise the real estate market at the moment.

"Declines in prices are being driven by weakening demand; rising supply is not presently an issue," said Mr Miller.

He noted that a decline in demand is due to rising inflation levels and unemployment figures.

These results could encourage more people to pursue real estate investments in Portugal, which backs up comments made by Nick Marr, chief executive at Homesgofast.com.

He recently suggested investors look beyond traditional locations such as France and Spain for property.

Posted by Beverley Taylor