Used real estate in Portugal could be set for a positive end to 2012, if the market in Lisbon is an accurate depiction of activity across the country.

According to property magazine Confidencial Imobiliário, second hand homes are trouncing newer properties in terms of sales in the capital, due to competitive prices and a high level of choice, Portugal News Online reported.

Between the last quarter of 2011 and the first quarter of 2012, more than 70 per cent of properties on the market in Lisbon were pre-owned.

Another factor helping to drive demand is the growing number of bank-owned repossessed homes.

Ricardo Guimarães, director of Confidencial Imobiliário, stated: "In some of the bigger banks, half of all loans granted are given for the transaction of used homes, which justifies the demand."

What's more, fewer construction projects are being granted approval and, because of price and loan issues, new builds are proving difficult to trade, Beatriz Rubio, chief executive officer of Remax Portugal, explained to the news provider.



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