Housing Prices in Portugal

@carolynivory1031 If a place like Portugal (small country) gets popular with Americans (large population) who ant to live mainly in a small part of Portugal (Lisbon area, Porto, Algarve with draw 90% of trhe interest) then there has to be a problem sooner or later.

I don't think that offering a lower price will help very much (try that at your local market with cucumbers). Additional homes on the relevant market would help, and this is happening (but slowly).

Carolyn good to hear you made the move. Thank you for that incite. However, I have a different question. What part of the US was your previous home? How long did the process take to get your visa to go to Portugal? And what part of Portugal are you in now? My husband and I are planning a similar move. We have filed our papers with VFS. and are waiting for the visa.

I will be in Portugal 5-11 July and if possible would like to make contact with you. Please let me know if that is possible. Have a great day.

Regards,

Laura

Sorry my visit will be 5-11 July not June.

@Laura and @Carolyn,

You can share contacts by private message (select profile and then click send message)

Regards

It's relative to the market.  When we sold our house in Seattle recently, it was about offers - who would offer the most, above the list price.  Now that's a market where making a lower offer isn't going to get you anywhere, and it isn't because in Seattle they have a lot of Norwegian blood or something.

Some of the houses around here have been for sale for at least a year.  Some sellers might entertain an offer.  I might have been able to get our house for a little less, or maybe not.  The price I paid made our neighbor's eyes bug out (it's sort of a talent of his), but he's just used to prices of yesteryear.  It would be a public service to bring those prices back, but it isn't likely to happen.

@JohnnyPT

Thank you.

@carolynivory1031 Hello Carolyn, I don’t thinkthe property prices are much different from other countries as if you want to spend 50k then there us property will be available somewhere in Portugal, however if you want to spend multiple Millions then there is also property available. You have to decide on your budget then fit the property, or decide on your preferred area then budget and see what is available. There is always bargain’s available..

@laurah76

Hi,

I had a home in Florida, St Pete Beach, MD and a small condo in NY that I still own.

I'm currently living in Parede, outside of Lisbon.

I'd be happy to connect and share my experience if you are in the area.

Best,

Carolyn

@nz7521137

Hi tried with success at the local market

Shouldn't everyone wish for a property crash?

After all, if your €200,000 home was reduced to €50 then you then could afford a stunning mansion in Quinta Largo for, say, €200 or similar.

Always bemused when others are cock-a-hoop believing they've made a perceived profit on their home.

After all, if your €200,000 home was reduced to €50 then you then could afford a stunning mansion in Quinta Largo for, say, €200 or similar.
Always bemused when others are cock-a-hoop believing they've made a perceived profit on their home.
-@slugsurmamates

Isn't is more likely the other way round? "Printing" homes just isn' as easy as "printing" money. More people moving to some popular areas of a country without adding new homes will only increase prices.

@paulinesumner True, but the point that I'm making is that we are driving the prices up.  It's always important to get the lay of the land, understand the culture and the market before jumping in.  Many of the comments are comparing the market in Portugal to other countries and applying those principles.  Underscoring my point of not understanding the country/market that you are shopping in.  All I'm saying is don't contribute to the problem, get the lay of the land first.

@carolynivory1031

Indeed. Yet it's normal human herd behaviour, similar to driving equities and stocks up. The market price is the one that another is willing to pay. Greater Fool's Theory? Personally, I believe Portugal is in a pricing bubble with rental yields 3% annual by my calculations, whereas I can achieve 10% elsewhere . It simply cannot last. Either rents increase - scary for working Portuguese in areas such as Algarve - or property prices decline. Other nations such as Sweden and Spain may lobby EU to make departures from their country less advantageous for their citizens through disencentives and income tax policies. Maybe "spare" money supply within the nations that are driving this bubble may reduce, perhaps the Golden Visa and NHR may become less attractive still, perhaps I'm just sceptical and naturally contrarian.

Until the smoke clears it may be best to rent rather than buy. Any additional property price increase may not keep pace with inflation so it is a wash.

Just my considerations. Nothing is for sure.

@carolynivory1031
Indeed. Yet it's normal human herd behaviour, similar to driving equities and stocks up. The market price is the one that another is willing to pay. Greater Fool's Theory? Personally, I believe Portugal is in a pricing bubble with rental yields 3% annual by my calculations, whereas I can achieve 10% elsewhere . It simply cannot last. Either rents increase - scary for working Portuguese in areas such as Algarve - or property prices decline. Other nations such as Sweden and Spain may lobby EU to make departures from their country less advantageous for their citizens through disencentives and income tax policies. Maybe "spare" money supply within the nations that are driving this bubble may reduce, perhaps the Golden Visa and NHR may become less attractive still, perhaps I'm just sceptical and naturally contrarian.
Until the smoke clears it may be best to rent rather than buy. Any additional property price increase may not keep pace with inflation so it is a wash.
Just my considerations. Nothing is for sure.
-@slugsurmamates

It is very hard to say whether Portugal (or a part thereof) is in a pricing bubble or not. It definitely has become expensive, but not expensive enough to reduce the immigration to Portugal. Rental yields are very good for owners that bought a while ago. When we arrived in Portugal we rented for over a year to have a good look around before either leaving or buying. We decided to buy in an area that we considered good value for money and after over 6 years we still think that our decision was very good.

Sure, if you get a place you like, and stay there for a good number of years, I think you can laugh at bubbles and such.  That's for speculators.

I think you'll find the normal persons of Portugal are not overly obsessed by property prices unlike the citizens of ** and ****** and *** ** * etc. are, Portuguese, in my experience, tend to live their lives rather than obsess. To be poor in Portugal is not a sin.

To be poor in Portugal is not a sin.
-@Strontium

But unfortunately it excludes from a quite large segment of the Portuguese property market.

The problem is not so much the price of the houses. For those who need to request a loan, the problem is the extremely high interest rates ...

Somewhat high, now -  back to what it was 10 years ago?  Looking at charts, I get different stories, and am not a finance wizard.  Anyway, as elsewhere, it's a common strategy against inflation.   A year ago, rates were very low, and there were still a lot of people priced out.

Expat buyers who I think are more often able to buy without borrowing will have an edge there, but if the current prices have anything to do with that recent unusually low interest rate period, I think they'll be buying at a plateau.

Most home loans in Portugal are indexed to 6-month Euribor. And as with all loans, you always pay interest first, and very little is paid in amortization during the first 15 years of the loan... In other words, the value of the debt remains almost unchanged, even if the families are permanently struggling to pay the monthly bills...

I doubt that the value of the houses will go down. Materials and labour costs are more expensive. There is a shortage of houses, as a result of totally wrong or non-existent government housing policies. This problem is greater in the bigger cities. And in the Algarve in particular for immigrant workers in tourism, where resorts are creating innovative solutions themselves, but I don't know if they will solve the whole problem ....

But in many places there are plenty of houses for rehabilitation and they are not expensive at all. You just have to know how to look... near highways and pretty localities...

Most home loans in Portugal are indexed to 6-month Euribor. And as with all loans, you always pay interest first, and very little is paid in amortization during the first 15 years of the loan... In other words, the value of the debt remains almost unchanged, even if the families are permanently struggling to pay the monthly bills...
I doubt that the value of the houses will go down. Materials and labour costs are more expensive. There is a shortage of houses, as a result of totally wrong or non-existent government housing policies. This problem is greater in the bigger cities. And in the Algarve in particular for immigrant workers in tourism, where resorts are creating innovative solutions themselves, but I don't know if they will solve the whole problem ....

But in many places there are plenty of houses for rehabilitation and they are not expensive at all. You just have to know how to look... near highways and pretty localities...
-@JohnnyPT

You are right regarding everything above. Also, the often EU imposed technical requirements for civil construction plus a lack of skilled construction labour are making construction (new or renovations) more and more expensive.

@nz7521137 Yes, if it weren't for the immense difficulties I'd be sure to encounter getting the work done, I'd be looking at potential restorations right now.  Reasonably confident the market would support the expense, it just isn't a business that looks accessible to outsiders.

What always amazes me is the small number of (non-holiday) rentals on the market and how expensive they are even far away from Lisbon or Porto. Portugal these days is only for those immigrants that have the funds to buy (or are very well off).