The value of homes in Australia dropped by 4.8 per cent in the final quarter of 2011, compared to the same three-month period in 2010.

Data collected by the Australian Bureau of Statistics examining the performance of the real estate markets in the country’s eight state capitals revealed Brisbane’s property prices took the biggest hit, falling by 6.7 per cent annually.

Meanwhile, Canberra held up the best, recording a decline of just 2.6 per cent, while Sydney put in a similar performance with a 2.7 per cent slide.

The quarterly figures released by the organisation indicate that in certain markets, Australian property prices may be making a recovery.

Perth, Canberra and Hobart all posted increases in real estate values in the final three months of 2011 of 0.5 per cent, 0.7 per cent and 0.8 per cent respectively.

Last month, the Housing Industry Association (HIA) published mortgage figures for November 2011, which pointed towards a "modest revival" in the established lending market.

Dr Harley Dale, HIA chief economist, explained lending for purchases of existing homes have now risen in five out of the previous six months.

Buying a property in Portugal has become more difficult recently, thanks to stricter lending conditions imposed by the country’s banks.

However, managing director of Portuguese agent Infinito Real Stephen Anderson noted investors are increasingly finding other avenues to raise money for their purchases.

"Recently, we have seen a few savvy developers offering an alternative method of funding to avoid the stumbling block of acquiring finance from the bank, thus helping to get the property market moving," he stated.

Mr Anderson went on to explain such deals usually involve a 30 per cent deposit from the buyer, with the remainder of the property’s value being paid off over a period of years agreed by both parties.

He added the buyer can then use the flat or house as they wish, either living there themselves or renting it out.

Last month, a report published by the Royal Institution of Chartered Surveyors (Rics) indicated there are opportunities for investors in the Portuguese lettings market.

According to the organisation, the restrictions on lending are forcing more people to move into rented accommodation, with Rics senior economist Josh Miller commenting the sector is exhibiting "robust demand and strong transaction expectations".