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Algarve A Shining Example Of Success
January 7, 2010Article by Ray Withers
Algarve property is to be used as an example by property developers, agents and even the travel industry in the rest of Portugal. This is because demand for Algarve property, and for holidays to the region has increased far more quickly than in the rest of the country.
“The Algarve is now a proven and twice verified market,” said David Cox, director of UK based international property investment consultancy Property Frontiers.
“It has proven that it can see sustainable growth during good times, without the need for a correction during hard times. That is exactly what the property buyer of today is looking for. Add into that the bargains that are currently available and you can see why the region has done very well indeed since fear over the international crisis began to subside,” he explained.
Cox also said that Algarve property, like the rest of Portugal on a smaller scale, has benefited massively from the demise of Spain.
“Those who would usually have purchased Spanish golf property are buying property on the Algarve,” he said.
Algarve property on the resale market has barely fallen in value and many developers with off plan offerings have refused to lower prices at all. According to the recent Knight Frank index of third quarter property prices, Portugal property had fallen only 4% in the year ending the third quarter, and had been rising in single digits on a quarterly basis since Q2.
In fact, property prices were down 1.5% in the year ending Q2, when prices had grown 1.7% on the quarter, the Q2 index said. The Q3 index showed prices flat in the year ending Q3, and down 0.3% on the quarter. The recent index of the Global Property Guide, which ranked all countries on their performance put Portugal in 7th place, making it one of the best performers in Europe.
The bargains referred to by Cox are the packages of incentives being laid on by developers, including free furniture packs and things like that.
Property Frontiers are currently marketing several Algarve properties for sale, most of which are excellent examples of the incentives packages being offered by developers, but uniquely some of them are even being marketed at discounted prices.
The Academy Villas and Apartments in the golf haven of Vale da Pinta is being offered at a 20% discount and with 100% finance. This means that you can buy a 1 bedroom apartment for £200,000. The development is actually located on a championship golf course, and properties come with free membership to the surrounding course, and another championship course in the area.