According to the Real Estate Observatory, by Century 21: "If, in 2018, the main reason for Portuguese people to give up buying or renting a house was not finding what they were looking for, currently the main reason has been the price. 55% of applicants who gave up buying or renting were motivated by financial reasons. This is followed by 23% for those who were not at the best time and 18% did not find what they were looking for".
This trend, it should be noted, "continues when we look at the Lisbon Metropolitan Area", since "51.2% of individuals do not buy or rent due to the price of housing".
"The main reason why people choose not to purchase a house, whether rented or purchased, is the economic factor. Secondly, the fact that it is not the right time to buy a property stands out, reaching 27.9 %".
Downsizing
Here, T2 and T3 apartments continue to be the predominant types between demand and supply, but the majority are looking for a T3 to buy or rent and have to opt for a T2.
"Furthermore, the areas are smaller and the choices end up having to fall more on apartments so as not to exhaust the allocated budget. The real price is 4% below the amount that the Portuguese believe they can pay and the rent is similar", concludes the same study.
"It is also clear that it is necessary to make adjustments in terms of priorities regarding the amenities of the house, the advantages of the surrounding area and the conditions. The growing importance of patios and gardens stands out."
The study also reveals that "there is a greater desire to change cities (19% to 25%), especially among 30-39 year olds" and that "detached houses attract more demand (28% to 37%)".
Once the government wakes up and makes all principle residences free of capital gains tax,the market will become.more liquid.
Older people wont downsize because they will get clobbered with a huge cgt bill.Me included.
So we dont move as there is no point.
By James from Algarve on 09 Feb 2024, 10:46