CGD (Caixa Bank in Portugal) predicts that in 2025 the price of housing will continue to increase because the demand for houses will continue to be much higher than the supply, said it’s executive president, Paulo Macedo. “We will see a continuation of price increases in 2025 because we don’t see that there will be enough supply for demand”, said Paulo Macedo in the opening session of the “Encontro Fora da Caixa” conference held in Faro, with the theme “The importance of managing natural resources for the future of the country”.
The CEO said that the increase in housing prices, which CGD expects for next year, is due to an “insufficient supply”, an “increase in demand”, without there being a “replacement of the production capacity of companies with a supply of affordable homes.”
This position was taken in a part of his speech in which Paulo Macedo outlined the macroeconomic context that the bank he heads expects in 2025, with the economy growing, namely due to the rise in consumption, the influence of the Recovery and Resilience Plan (PRR) with a “significant execution”, low inflation and a reduction in interest rates.
“We see the economy growing, but not as much as we would like, at a rate of 3%, a target of economists”, said the banker who warned that these short-term perspectives have “some risk”.
With regard to individuals, Paulo Macedo says that the conditions have been created for there to be a better rate of effort, a greater debt capacity, an increase in investment, consumer credit, and housing credit, maintaining the level of employment.
CGD expects disposable income to increase, with an increase in the real income of workers and pensioners, a reduction in taxes, a reduction in interest rates and a decrease in inflation.
Based on the views of CGB its suggests that if you are looking to buy in Portugal there is no advantage in putting off the purchase hoping for a bargain and with properties selling so quickly its important tom ensure you have your finance option in place prior to putting an offer in
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