Real estate market in Portugal going down?
Many have been asking me this question.
Truth to be told, nothing is going down in the prime zones across Lisbon region.
If one asks me this question, I would ask him where on earth he got his information. And 99% he would say “Idealista! I saw the prices of properties going down by 5%, 8% or 20%”.
I know he would give this very answer. And let me explain you quickly. Prices have not really gone down. And what you are seeing on idealista is just the asking price. If the prices shows a downward trend, or discounted price after being listed on the market for a while it is just a corrected pricing. In 99.99% cases, the acquisition of the property ( which took place years ago) was way lower than the current asking price. Thus even at the lower asking price , it might be a double or triple of what the seller bought years ago. Is that a fall in price? Not quite.
To conclude, as the market slows down and transaction volume decreases due to the rising interest rates and inflation, sellers are listing at a slightly more reasonable price. How the market respond will further dictate the price trend in the following months.
