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Portugal Property Investment For Sale

 

"The third most popular second-home destination in the world."

 

As one of the warmest European countries with beautiful countryside, quintessential coastlines, elegant cities, Portugal has become one of the world’s most popular tourist and second-home destinations.

The famous Algarve coast is particularly popular with golf enthusiasts and boasts some of the finest mature courses in the world, although property with golf course access continues to come at premium price compared to property in different locals.  Although most holiday makers and property investors head for the Algarve coast, the northern coast should not be overlooked and there are an increasing number of high-quality golf developments here as well.  For wine lovers, the Duoro Valley and city of Porto are also popular destinations, famous for their exports of Port and Vinho Verde.

Although Portugal has a healthy tourist industry, the same cannot be said for its economic forecast. House prices in Portugal have been falling for some time now and look set to continue to slide for some time to come, reflecting the country’s dire economic situation.  Not only are house prices dropping but rental yields are also low especially in the Algarve although they are slightly better in Lisbon and the area around the capital. 

In addition there is almost no activity in the Portuguese residential construction sector and due to bad debts an increasing number of property and construction firms are now going into liquidation, whilst thousands of home owners are loosing their houses due to foreclosures.  The mortgage market is also declining and interest rates are climbing. In addition, Portugal is finding it increasingly difficult to compete on the international market due to its very rigid labour laws.
 

Country Guide

Geography

Portugal is situated in south eastern Europe on the Iberian Peninsula sharing  a border with Spain. The northern part of Portugal contains many hills and mountains which in the winter become very popular with skiers and snow boarders. Along the southern coast, a number of mountains divide the Alentejo region with the Algarve, a very popular tourist resort with spectacular beaches. Lisbon is the capital of Portugal; situated on the river it offers many historical sights and attractions. The country is divided into three geographical areas by three large rivers which cross into Spain, The Minho River, The Douro River and the Tejo River.

Government

The government in Portugal is a democratic republic, There are four main governing components within the government: the President of the republic, the Assembly of the Republic, the Government and the Courts. A President is elected for a five year term. c

Language

Portuguese is the official languages of Portugal.

Standard of Living

Since joining the EU in 1986 the standard of living in Portugal has been steadily rising and the country now enjoys a relatively high standard of living. Crime rates are low, the health care system is very good and the cost of living in Portugal is much cheaper than other European countries. 

 

Country Economy

Whilst the country used to rely on agriculture to maintain a secure income, it has in recent years followed the lead of many other EU countries and focused more on its service sector.  Tourism and consumer goods now amount to well over half of the country's overall GDP. Portugal has like other South European countries suffered greatly since the euro-zone crisis and growth has further been restricted by its strict labour laws.

Key industries

Clothing and footwear, machinery, chemicals, cork and paper products, agricultural products, food, oil products, plastics and leather, machinery and tools, vehicles.

 

Hotspots

Algarve

Central areas of the Algarve around Albufeira, Vilamoura and Faro have been heavily developed in terms of tourism and the property market for several decades. 

As a result of a recently completed motorway from Faro, the quieter, opposite ends of the Algarve are now also opening up to tourists and investors. The west is slightly wilder than the eastern end, with fine sand beaches and areas of national park. Towns such as Lagos and Burgau still have a very Portuguese character, despite attracting many tourists in the summer months. Development has only recently started to happen on any kind of scale and is generally high end and low key. To the east, on the border with Spain, much of the new-build is happening around the town of Tavira where there are nearby golf courses. A lot of development here is on a less sophisticated level than further west, with much of the property being aimed at the cheaper end of the market.

Lisbon

The capital is a beautiful and bustling city with a great deal of historic attractions, multi-cultural restaurants and bars and a fabulous river location. It has been allowed to become a little frayed round the edges but a programme of EU improvements has started to give it back its self respect. 

The Lisbon Coast

Within 30 minutes of Lisbon are the coastal magnets of Cascais and Estoril, popular with those who live in Lisbon as a weekend retreat and with those who choose to live there and commute into the city. Offering a slightly quieter but nonetheless vibrant nightlife than most tourist resorts, Cascais' downtown provides late night bars and restaurants and the Marina is very modern in its shopping and nightlife. Estoril meanwhile plays host to the largest casino in Europe. In general, these resorts have a sophisticated reputation and property (and its prices) reflects this. 

Silver Coast

The coast from Porto to Lisbon has become an alternative to the Algarve for those who want sun and sea. Though the weather is not as temperate as the southern coast, the region is popular with a mix of ex-pats and Lisbonites, who come to spend weekends and summer holidays here. Development has started to increase in this region and several large residential and golf complexes have been built. Appealingly all development is monitored and controlled to preserve the area's natural surroundings. 

The Alentejo

People who want to live in Portugal but find the coast too expensive are moving out to this large rural area. Most of them are in search of village properties or rural farms to buy and renovate. The area is a large wheat producer and is becoming increasingly recognised for its red wine. This rise in reputation is making Alentejo's vineyard land some of the most expensive throughout the country. Many claim that the quiet villages in this region offer a chance to see the real Portugal.

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