Property price growth in Portugal is continuing to accelerate due to a lack of supply and rents in the residential market are also rising strongly, the latest index data shows.

The lack of supply is affecting the main residential areas of Lisbon, Porto and the Algarve covered by the monthly survey index from the Royal Institution of Chartered Surveyors and Confidencial Imobiliário.

Growth is predicted rise further and survey respondents continue to foresee headline house prices increasing by around 4.5% over the next 12 months, with this rate anticipated to accelerate to around 5.5% on average over the next five years.

Prices grew by 12.8% at the national level in 2017 but in Lisbon’s historical centre, prices increased by 21.1% year on year and have doubled since 2013.

On a regional basis respondents in Porto envisage the strongest price growth over the next 12 months, although the Algarve displays the firmest projections on a five year horizon.

Feedback across the lettings market tells a very similar story, as rents continue to rise sharply due to the demand/supply imbalance. For the time being at least, respondents appear unconvinced that this trend will see any meaningful change in the near term.

Read the rest of the story @ propertywire.com