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Algarve property market set for revival in the near future
| Published: | 4 Feb at 6 PM |
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Analysts are suggesting that Portugal’s devastated property market is showing signs of movement, with the Algarve in particular having all but bottomed out and looking to attract interest in the near future.
Prior to 2008, properties in Portugal were priced at higher levels than in most popular holiday home, expat and retiree destinations. The country’s subsequent economic turmoil has resulted in real estate now being priced at a third lower than comparable homes in the UK.
Now that the market has all but bottomed out, home owners and real estate agents are pricing properties at similar figures to Portuguese bank valuations, suggesting that demand will grow and lead to price increases in the medium term. Borrowing costs are also at an all-time low, making it easier to afford mortgages although credit restrictions are still tight.
Recent research into the overall European property market suggests that Portuguese properties are slightly undervalued, making them considerably cheaper than their counterparts in other troubled Mediterranean countries. Property prices in Spain, it noted, are still up to 20 per cent too high.
The general opinion is that the Portuguese housing market overall has another three months of decline price-wise, although activity in Lisbon is beginning to pick up and Porto is stable. The country’s economy is still shaky, but positive expectations as regards a real estate revival would appear to be well-founded.
Prior to 2008, properties in Portugal were priced at higher levels than in most popular holiday home, expat and retiree destinations. The country’s subsequent economic turmoil has resulted in real estate now being priced at a third lower than comparable homes in the UK.
Now that the market has all but bottomed out, home owners and real estate agents are pricing properties at similar figures to Portuguese bank valuations, suggesting that demand will grow and lead to price increases in the medium term. Borrowing costs are also at an all-time low, making it easier to afford mortgages although credit restrictions are still tight.
Recent research into the overall European property market suggests that Portuguese properties are slightly undervalued, making them considerably cheaper than their counterparts in other troubled Mediterranean countries. Property prices in Spain, it noted, are still up to 20 per cent too high.
The general opinion is that the Portuguese housing market overall has another three months of decline price-wise, although activity in Lisbon is beginning to pick up and Porto is stable. The country’s economy is still shaky, but positive expectations as regards a real estate revival would appear to be well-founded.
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