New Report, Housing Market

NEC publishes the second report  from the housing market group [Report – 12.12.06 (Second Booklet))]. Since the last report presented in May, the most important legislative action to reform the housing market was done. As a matter of fact, November 12th marked the officialization of the new housing rental law. Henceforth, important changes are predicted, particularly in what concerns the update of the old rental contracts. A detailed and schematic analysis of the new law can be found in this same report.

A deeper analysis of the dynamics of the market was performed in this report, denoting a rental housing market with an extraordinarily steady behavior during the last decades. Such contrasts (international comparison now presented) with countries also under financial rescue where the rental housing market seems to adjust faster to the economic cycles.

The MoU, in its different versions, has always underlined the need to bring stimulus to the side of the housing requalification. This progressive greater importance of house requalification can be already denoted. Although that happens particularly due to the huge fall in the number of licenses for new construction compared with a stable behavior of licenses for the housing recovery. This reflects that this side of the market as showed a greater resistance to the presently difficult economic circumstances.

With the new rental housing law is also expected to be created a new extra judicial mechanism called “Balcão do Arrendamento” which intends to turn faster and more efficient the resolution of conflicts between tenants and landlords. In this report is presented the evolution of the three most important mechanisms to arbitrage rental housing conflicts. The data collected now will serve as a benchmark and will allow to understand, in the future, if these old mechanism will be, or not, less preferred in favor to the new “Balcão do Arrendamento”.

This group of NEC will continue its analysis of the market and we expect to, in short-term, proceed to the analysis of “Inquérito às rendas”, performed in a monthly basis by INE. From this data base we hope to present in the future a more detailed evolution of the rental values, particularly the value of the monthly rent desegregated by topology of the dwelling, geographic area and class of the contract.

Report – 12.12.06 (Second Booklet), download

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