Summary:
Real estate market in Lisbon faces challenges like unfair practices and high speculation.
Only 10 to 20 legitimate listings found among many advertised properties.
Response rate from agents is less than 10%, raising concerns about professionalism.
Proposals for regulation include mandatory licensing and transparency in transactions.
Implementing fixed salaries for agents could reduce conflicts of interest.
Understanding Lisbon's Real Estate Market Challenges
The real estate market in Lisbon is currently facing significant challenges, including unfair practices, lack of transparency, and excessive speculation. A recent investigation into the market reveals troubling trends that potential buyers should be aware of.
The Discrepancy in Listings
When searching for apartments priced below €130,000-€140,000, one may find numerous listings (around 40 to 50 options). However, upon contacting these listings, only 10 to 20 are genuinely available, with many being substandard or misrepresented, such as apartments under 15 m² selling for exorbitant prices. This raises questions about the legitimacy of these listings.
Poor Response Rates from Agents
The response rate from real estate agents is alarmingly low, averaging 1 in 10 inquiries, often leading to 0.3 responses for genuine listings. Many agents seem to only respond to absurd cases, such as properties with outdated photos or misleading descriptions, indicating a lack of professionalism in the industry.
Possible Explanations for the Current State
Several factors may explain these anomalies. Some listings might serve as bait to attract clients, reminiscent of practices from the 1980s where agencies advertised non-existent properties. Additionally, many properties previously used for short-term rentals are now being tested for their market potential, as owners hesitate to revert them back to residential use due to recent legislative changes favoring short-term rentals.
An Overabundance of Agents
The real estate sector in Lisbon is saturated with agents, resulting in aggressive tactics to secure listings. This surge in agents has led to inflated commissions, often exceeding 5% and reaching as high as 10% in certain areas, further complicating the market dynamics.
Proposals for Regulation
To address these issues, several proposals have been made to regulate the real estate market:
- Mandatory Licensing: All real estate agents should obtain licenses and undergo certified training.
- Transparency in Transactions: Buyers should have access to historical transaction data and prior offers to prevent price manipulation.
- Independent Evaluators: Property evaluators must operate independently from banks to avoid conflicts of interest.
- Fixed Salaries for Agents: Transitioning from commission-based pay to fixed salaries could reduce conflicts of interest.
- Public Portal for Construction Information: A centralized portal should provide data on construction companies and their practices.
- Tax Incentives for Affordable Housing: Implementing tax benefits for owners who offer affordable housing options.
- Stricter Enforcement: Enforcing penalties for agents who manipulate prices or post false advertisements.
These measures aim to create a more transparent and fair real estate market, benefiting not only buyers and sellers but also contributing to the social stability and sustainable development of Lisbon.
Conclusion
A fairer and transparent real estate market is crucial for all Lisbon residents. With a concerted political will and collaboration among stakeholders, it is possible to establish a balanced environment that ensures accessibility and equity in housing.
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