24. February 2011 14:31
Earlier this week, I brought you news that British estate agent Knight Frank had reported an upswing in luxury home enquiries in the later months of last year, particularly in the Portuguese golfing haven of the Algarve. Popular amongst affluent retirees and the European jet set, the many beautiful luxury villas for sale in its high-end resorts have long been a desirable asset for those seeking a warm climate and perfect year-round conditions for golfing.
However, the Royal Institute of Chartered Surveyors' latest report indicates that prices have lowered considerably since the economic downswing, and that the Algarve has in fact been one of the worst affected areas in the country by the bursting of the European property bubble. With its close proximity to England, France and Spain and its many tourist attractions, the region is ensured a safe future in terms of rental demand, so now may be the time for buy to let investors to get in on the market. The Press Association has further details on the downswing in the local market:
"The January Royal Institute of Chartered Surveyors and Confidencial Imobilio Portuguese Housing Market survey shows that due to falling demand residential property prices in the country fell even further in January. The national Activity and Confidence indices both remain negative, despite some improvements, they were at -14 and -31 respectively compared with -32 and -35 the previous month. A reading below zero marks a deterioration, while a positive number signifies an improvement. The indices range from -100 to +100.
Outlook for prices remains far more negative than that for sales, the survey shows. However, there is a significant disparity between regions. The region suffering the worst conditions in the whole of Portugal is the Algarve. Prices and price sentiment has been hit harder in the Algarve than elsewhere due to falling interest from potential new buyers and sharply rising new vendor instructions.
"The Algarve market is heavily oriented towards second homes and therefore it tends to be prone to sharper seasonal fluctuations than the Lisbon and Porto markets," said CI spokesman, Ricardo Guimaraes."
For a range of exquisite property options available for sale in the Algarve and in Portugal as a whole, visit Eurobrix.com and browse through our listings.