Portugal is now one of the cheapest civilized places in the world to live. As part of the contraction, both asset prices and many retail prices in Portugal have dropped substantially.
The middle/upper-middle class segments of the real estate market have gone no-bid, and investment property owners with mortgages to service are getting desperate.
To give you an idea, Iím renting a spacious 3-bedroom, 2000 square foot luxury apartment in a new(ish) development that was completed during the real estate boom a few years ago. Itís costing me a whopping $60/night.
The complex is a ghost town. Iíve seen four human beings in as many days, and as I stand on the terrace surveying the other units, most of what I see is vacant.
Property owners Iíve spoken to say that they donít want to rent to locals under a long-term lease because the locals canít pay. And when they stop paying, the government makes eviction very difficult.
This makes their market of potential lessees quite small, hence cheap prices.
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