Despite seeing an improvement throughout July, the property market in Portugal is still facing negative territory, according to the latest figures from the Royal Institution of Chartered Surveyors (Rics).

Although activity and confidence within the housing market was up last month, house prices did fall at the same time. Senior economist for Rics, Josh Miller stated; “It is the demand side of the equation that is weighing down on prices.” Mr. Miller then went on to say that this situation can actually be seen as a positive, because Portugal will not be left with too many new builds; there is enough to supply the demand.

This is also the perfect time for foreign investors to buy property in Portugal, because as the economy recovers and the unemployment numbers fall, then the prices are bound to be pushed up again.

Earlier this month the Rics Global Distressed Property Monitor said that Portugal is among the locations which are set to see a rise in demand over the second half of 2011.

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