Portugal property prices set for a 20% fall

Economic turmoil in Portugal could lead to property prices in the country falling a further 20 per cent by the end of 2012.
This is according to foreign exchange bureau Caxton FX, which noted that after the country failed to pass a strict austerity package, an EU and IMF bailout looks all but certain.
As a direct result of this, the firm suggested that property in Portugal was likely to fall in value.
Caxton FX explained that there has been a steady increase in the number of Brits buying property in the European country in the past year, adding that recent economic events mean that buyers will be able to negotiate more on asking prices.
Rupert Lee-Browne, the firm’s chief executive officer, said: "Eurozone interest rates are likely to rise, increasing the expense of homeowner loans. As loan defaults increase, and the number of repossessions rises, I expect the price of Portuguese property to fall significantly."