Cloudy outlook for Portuguese property prices

Clouds continue to gather over the property markets of Europe, reports suggest that the property slump is far from over.

A new report detailing the progress of residential property in Portugal indicates that house prices will continue to fall for some time yet. The amount of property sales declined during last month and confidence among property professionals remains on the negative side according to data supplied by the Royal Institution of chartered Surveyors.

As credit restrictions remain tight from lenders there is a growing demand for rental properties from families unable to access mortgage finance. However some agents report that while there is a plentiful supply of rental properties the type of property available to rent is not always the type sought by prospective tenants.

Despite the increase in demand for rental property in Portugal rents are not increasing which is a relief to many tenants who are feeling the pinch during the current economic climate.