Total Area: 91,982 km²
GDP (in billion USD): 239
Portugal, officially the Portuguese Republic, is a country located in Southwestern Europe, on the Iberian Peninsula. The Portuguese housing market continues to slide, reacting to the country's dire economic situation.
During the year to end-May 2012, the average property price in the country plunged by 8.9% to €1,047 per square meter (sq. m.), based on the figures released by Statistics Portugal (INE). When adjusted for inflation, property prices actually dropped by 11.3% over the same period.
There was almost no activity in Portugal's residential construction sector, and thousands are losing their houses due to foreclosures. The construction sector owes banks around €25 billion and insolvency risks are increasing, as banks cut back on loans. The total number of property and construction firms going bust has risen by almost 50% in 2012 from the previous year.
There are no restrictions on foreign property ownership in Portugal and transaction costs are generally low.