The data released by the Association of Professionals and Estate Agents in Portugal (APEMIP) for the last month of 2017 highlight the strong growth of the property market and, in particular, the residential sector. Among the main results of this study is the way in which houses are sold quickly. Statistically, 4 out of 5 houses take less than 6 months to sell.
The quick sale of the houses was, for the barometre of this association, a clear indicator of the improvement in the property market, thus showing how fast it is expanding. According to data released by the latest APEMIP study, more than 80 per cent of properties marketed in 2017 were sold in less than 6 months.
According to the president of APEMIP, Luís Lima, the speed of property sales is one of the factors that is most justified. This is due to the fact that if we take a look at the situation of property transactions two or three years ago, we will realise that it took about two years for properties to sell.
With regard to the types of homes purchased during the period that was under analysis, we found that there is a preference in the domestic market for houses with a smaller number of bedrooms, of which 61 per cent of the properties marketed during this period fell within the types T1 and T2. These were directly followed by T3 types of properties, which constituted 31 per cent of the sales. According to the APEMIP, these indicators are particularly relevant since they allow the property market to better understand the needs of Portuguese families and may prove to be extremely important for future construction investments.
The figures presented by APEMIP can be justified by such positive results as the 36.5 per cent growth experienced by the luxury estate agency Engel & Völkers in Iberia. In 2017, Engel & Völkers was responsible for the brokerage of numerous properties in the Iberian Peninsula (Portugal, Spain and Andorra), having received almost 2 billion euros from these transactions, with an average price of 660 thousand euros per property.
The German property brokerage firm had reached 1425 million euros in its transactions in 2016 and amounted to 1945 million euros in 2017; these figures confirm the company's growth of 36.5 per cent. Globally, this company has also hit new records by expanding its scope of action and, as the company CEO Christian Völkers has revealed, it has re-established its position in the international property market.
This growth, which is partly due to the overall economic improvement and the growing tendency for investment by foreigners, was further promoted by the company's increased turnover, which allowed it to invest further in opening new property shops, marketing divisions and opt on a bigger and more competent human resources team.
In this respect, it is worth highlighting the recruitment of more than one thousand new estate agents and the strong presence of Engel & Völkers in 8 hundred locations around the globe.
The return to construction is also seen with optimism through the eyes of APEMIP. This is due to several factors. In addition to allowing a wider range of choices for consumers, increased construction would create a new marketing scheme, boost lending from banks (notably due to mortgages) and also reduce unemployment figures.
Despite the difficulties associated with the lack of properties for sale in Portugal's most populous areas, the positive trend does not seem to end as the market is expected to keep expanding and new constructions will respond to the needs of the buyers in these national centres.