By Steve Taggart
The Portuguese property market is showing significant signs of improvement, as domestic and international buyers alike take advantage of the low prices that the Iberian country now offers.
After three years of falling values, Statistics Portugal has revealed that property prices increased by 1.22% in the year to the first quarter of 2014, though prices are still well below their 2007 peak. In the southern Algarve region, for example, they remain 22.5% below their peak level. The result is a market packed with affordable properties – so much so that the third edition of the Deloitte Property Index Report has revealed Portugal to be among the top three most affordable residential property markets in Europe (along with Germany and Denmark).
The positivity within Portugal’s housing sector is being felt both domestically and further afield. The Algarve in particular is popular with foreign buyers, from investors to holiday home owners to expats. Some 50,000 properties in the Algarve are now British or Irish owned, according to boutique real estate agency Ideal Homes Portugal. Founding Director Chris White comments:
“Many foreign buyers are drawn to Portugal by the weather, the stunning beaches and the low cost of living. The Portuguese government has put a number of incentives in place to encourage foreign investment in the country’s market. The Non Habitual Resident Tax Regime, for example, offers up to ten years of tax incentives for those settling in Portugal, while a Golden Visa programme grants residency to non-EU citizens who purchase property costing €500,000 or more.”
In terms of prices, €105,000 is enough to purchase a one bedroom, one bathroom apartment in Olhos d’Agua, just 1,500m from the idyllic Falesia beach and the famous Pine Cliff Golf Resort. The Algarve is dotted with championship quality golf courses such as Pine Cliff, with an annual KPMG report highlighting it as the second most popular golf tourism destination in the world (second only to Spain).
For €239,000, you purchase a two bedroom, two bathroom town house with panoramic sea views in the picturesque town of Carvoeiro. Its cliff top location and proximity to two secluded beaches, along with a generous roof terrace and private swimming pool make this the perfect place for enjoying family life.
If money isn’t an option, buyers looking to spend in the region of €1.5 million can purchase a unique, ultra-modern five bedroom villa with swimming pool and landscaped gardens, set in a quiet cul de sac between the upscale resorts of Quinta do Lago and Vale do Lobo.
As the UK economy improves, Portugal could be a wise place to invest in your dream holiday home.
For more information visit www.idealhomesportugal.com
