The recent past of Portugal's Residential Market does not show any particular reason for optimism. With almost all the positive variables decreasing and the negative variables on the rise, it is hard to find evidence to support a cycle change.

However, as Joaquim Chambel, managing director of Colliers international, says "the absence of a real estate bubble in Portugal, highlighted by the slow decrease of the property market over the last decade, allows us to conclude that Portugal's residential market was not under the impact of a speculative activity as it happened in other countries."

"Real estate is now struggling because of the unprecedented worldwide financial crisis and the inherent consequences, well recognised by everybody, that spread to the portuguese economy - credit scarcity and confidence crisis of the economic players."

Colliers International market report concludes that, when the storm passes by, some areas of the country will experience a low level of new supply and an increased demand, either by acquisition or leasing, in the mean time postponed because of the current crisis.