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.