News from Portugal shows the emergence of an accelerating micro market in the Algarve driven by increased foreign investment in property.
Whilst an understandable lack of demand and unemployment continues to dampen domestic demand for Property in Portugal particularly in the cities of Porto and Lisbon, the Algarve is continuing to attract the attention of those seeking investment and retirement property in the major European holiday location.
At a national level Portugal hasn’t suffered from the oversupply issues blighting some areas of its neighbour Spain therefore for those with money to spend and the means to obtain a mortgage in Portugal there are opportunities take advantage of current market conditions and invest in property the Algarve.
RICS senior economist, Josh Miller says in the country’s official monthly housing report “Unlike in Spain and Ireland, oversupply is not an issue; the official statistics show no evidence of overbuilding prior to the economic downturn.”
As a result, once the economy starts to recover, Portugal will not have to cope with the residential inventory issue that other countries face.” He added. This follows a comment earlier this month from Knight Frank spokesperson Christian De Meillac who told the Telegraph that areas such as the western Algarve are showing signs of recovery due to their “strong international appeal”.
The debt problems in Portugal have been well publicised and there is little doubt the domestic population will be feeling the effects of austerity as they are in some of the other debt laden economies of Europe. That said, the Algarve is to some extent insulated from these effects as it has the necessary attractions in place to attract international buyers to fashionable resorts like Vilamoura, which is seeing average occupancy levels of 32 weeks according to research from ipsbmv.com.
Galacticos such as Luis Figo and Ronaldo have recently invested in Vilamoura and the planned development of the marina will be a major plus elevating the golfer’s paradise to a level rivalling the best resorts in Europe.
Chris Johns, Marketing Manager, at ipsbmv.com commented; “Developers in and around Vilamoura are seeing increasing demand for property in good beachfront locations. New developments in particular have been selling fast and occupancy levels here are some of the best you will find in Europe. This makes it an ideal location for those seeking investment property or a retirement nest egg”
For more information about the property market in the Algarve and the attractions of the resort as a key investment location contact chris@ipsbmv.com or call 0800 800 6661.
