New construction projects will revolutionize home prices

The increase in the supply of new construction in the big cities will lead to a reduction of prices in the second-hand market, with impact already this year. Even so, the greatest reflexes will be felt when these projects are completed, which will have a greater effect from 2020.

The Association of Professionals and Companies of Real Estate Mediation of Portugal (APEMIP) believes in a scenario of price reduction already this year.

What is certain is that data from the National Statistics Institute (INE) in recent months are already beginning to show this deceleration of values - even so, far from the levels verified before this euphoria in the real estate market.

Only last year the number of transactions increased between 15% and 20%, according to APEMIP accounts. With regard to the purchase of houses for housing, from January to September 2018, more than 132 thousand family-owned dwellings were transacted, 19% more than in the same period of the previous year, with the third quarter accounting for almost 46 thousand transactions, the market of used houses to gain increasing representativeness, due to the absence of stock in the market.

This article is an abbreviated version of the original. To read the full article, click here.