Portuguese and international investors will be dedicating greater volumes of funds to the country’s housing stock in the coming year, according to recent projections by Banco de Portugal (Bank of Portugal). The investors will be reacting to increasing levels of disposable income among Portuguese along with demand created by the labor market, according to the bank’s report. It claims that the level of gross fixed capital formation in the housing sector fell 2.9 percent in January of 2016, which was better than the 3.9 percent decline in January 2015. The volume of mortgage loans has been rising gradually, reports the bank, while recent developments of the Furibor three-month rates reflects growing confidence in real estate investment activity.
