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Market sees salvation in the Algarve

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The only word in Portuguese you need to know right now is deprimido.

If you are unfortunate enough to be trying to sell property, or in any way involved in the Portuguese real estate market, it is probably worth learning this word which, unsurprisingly, means depressed.

Prices in Portugal have been falling across the board, with the drops faster and bigger in the capital, Lisbon, and the country's second city, Porto.

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The latest housing market survey from the Royal Institution of Chartered Surveyors points to weakening demand, pushing down prices and slowing activity.

National indicators on confidence and activity within the market have fallen seven points and, for the first time, developers are also reporting prices falling at a much faster rate, matching what the agents themselves are seeing. However, agents are quick to retort that, while the overall picture is dark, there are some small bands of sunshine, most markedly in the coastal areas and, in particular, Portugal's southern coast, the Algarve.

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It has long been a favoured spot for English-speaking buyers and prices there, while still declining, are falling more slowly than elsewhere.

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