“A national alert”: real estate bubble could burst and Portugal is 1st on the list
Several recent reports by international consultants warn of the main Portuguese economic danger this year: the explosion of a real estate bubble in the second half of the year.
SIC commentator, Nuno Rogeiro, in his opinion space East West we analyzed the results of a study that placed Portugal as “the first State to have a real estate bubble burst”.
According to Nuno Rogeiro, it all started with an almost ignored academic text published five months ago. This study, unsigned but based on requested numbers, warned of the excess income from housing with variable interest rates.
Portugal has almost 10 times more people with variable rates in housing income that the rest of Europe. The number presented, and “which was confirmed at a meeting last week between several international investors in Portugal”, is that 93% of loans have variable rates, explains the commentator. In Portugal, it is estimated that there are 1.3 million families in this situation.
Nuno Rogeiro says that he does not want to generate social alarm, but he is aware that “in many financial and investment circles people are starting to talk” about the possibility of real estate bubble burst. Also according to the commentator, this is a problem that, as of August, could affect families, who will have to enter into business with banks regarding the renegotiation of loans.
This study, which places Portugal as the first European country where the real estate bubble could burst, was carried out by Share Value.