There is a clear slowdown in the supply of real estate in Portugal. At the end of April, 135 thousand properties were on sale, compared to 150 thousand at the end of last year, which translates to a decrease of 6%.
Real estate consultant Imovindo warns that a decrease in the supply of real estate “could cause prices to increase in the short term, especially in large cities.”
The largest drop in inventory occurred in apartments, where the supply of housing remained relatively stable during the first four months of the year.
“We are talking about about 15,000 new properties put on the market in the first four months in the Lisbon metropolitan area, and 44,000 new properties in the Porto Metropolitan area, with similar declines in both metropolitan areas, 15% in Lisbon and 18% in Porto. compared to the last quarter of 2021,” Nélio Leão, CEO of Imovendo, also highlights, in comments to Negócios.
According to the digital real estate analysis, most of the companies are located in the areas of big cities, especially in Greater Lisbon, and there are fewer and fewer apartments for sale, used or new.
With regard to real estate sales, Imovindo notes, the pace of business is similar to that of 2021, with more than 38,000 properties sold in the first quarter of 2022 and about 13,000 properties in April 2022, “that is, demand remains active, although Rising prices. And new restrictions on real estate loans.”
“There is still a lot of uncertainty about the rate hike, which should be either in July and/or September 2022, when the ECB Executive Committee meets with eurozone central bank governors, but it has also been estimated that such an increase could That you reach 25 basis points if the same thing happens,” says Nélio Leão.
“Although the recorded inflation rate is already four times higher than the estimated rate of the previous year, the increase in interest rates could lead the eurozone into an unwanted recession,” asserts the CEO of Imovendo.
Moreover, Liao concludes that “this uncertainty, the war in Ukraine and the return of a wave of the Corona virus are expected to affect consumer confidence and that there will be a slowdown in the real estate market, which has been a very resilient market for the past two years.”
On the other hand, Imovendo ensures that in the first four months of this year it has dealt in more than 10 million euros in second-hand properties, which is an increase of 60% compared to the same period last year, and “at the same time allowed” its clients to save more than €500,000 in real estate commissions, given that the business model differs from current practice in terms of commissions,” says the digital real estate company.
Nélio Leão defends this, saying: “Our technology- and digital-based business model allows us to charge owners only a fixed commission, making it a robust model that is more prepared for times of crisis than the traditional real estate model.” In the case of Imovendo, “the owners are at the heart of the process, making huge gains in efficiency.”
The outlook for the purchase and sale of real estate in the local market for the first half of the year is stable compared to the first half of last year, Imovindo notes.
Based on these figures, the real estate company expects to reach 50 million euros in properties traded in the first half of the year, in Lisbon and Porto, “a doubling of the number of properties handled compared to the first half of 2021”. Concludes.
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