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Now Is The Time To Buy A Property On The Algarve

15th September 2009: Algarve Property News

There has been a lot of publicity about the international property market over the last 18 months and much of it has focused on the oversupply in some areas, notably Spain and low demand that has caused prices to fall dramatically. But what about areas like the Algarve that did not over speculate in the booms years?

The Portuguese property market has gone through a correction in recent times but unlike Spain, when the sun was shining it’s local authorities still maintained a very strict control on new development. Builders in Portugal are well known for their conservative attitude towards speculation and the government have very careful guidelines in place to maintain the character and appearance of urban and rural areas. This control means that new property is carefully and responsibly built with more emphasis on quality and how it integrates and affects the surrounding area.

So like the UK, supply and demand have stabilised quite quickly with the Algarve registering a 2% price increase in Q209 compared with a 1.01% rise for the whole of Portugal and the average price per m2 is now an attractive 1,429 EUR (source: Global Property Guide). This upswing in demand is being seen along the entire Algarve and buyers are now picking up some great bargains.

This is good news for cautious property buyers. Whether considering an overseas property purchase for lifestyle or financial reasons, Portugal offers the kind of real estate market that can provide a steady return on your investment in the medium – long term. Buyers know they will get good year round weather for lifestyle and reliable rental and capital appreciation in the long term because supply and demand are more carefully maintained than other destinations.

The Algarve does not need to be introduced and is the jewel of Portugal’s crown. As the southern most region, its south facing shores and beaches are bathed in sunlight and the international airport of Faro boasts some of the best year round connections to all major European airports.

It is amongst the most popular destinations in northern Europe and can rightfully claim to have some of the most attractive beaches, services, towns and golfing facilities in the world. An element of elitism has been observed in the Algarve second homeowner and tourism communities - it is widely felt the area has not imported as many problems, is more refined and has an altogether more discerning atmosphere than many alternatives.

The Algarve property market has been stable since the first holiday homebuyers came in the 1970s and since then the Government has taken a measured and strategic approach to developing it into one of the most famous tourism centres in Europe. Far less volatile than Spain, property purchases have still slowed as they have everywhere and prices have fallen. As the global economy recovers from economic turmoil, now is certainly the time to consider the Portuguese Algarve for a second home or investment property purchase. You will sleep more soundly at night buying here.

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