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Algarve Enduringly Popular
April 26, 2010Article by Ray Withers
Algarve property has been identified as a region of enduring popularity, one of only a few such locations within Europe.
Charles Weston-Baker of Savills was quoted in country life as saying that the prime property areas of Portugal and Spain are still good bets.
‘The Algarve and Marbella are enduringly popular, but became very expensive; now, they offer great opportunities,’ he says. ‘Many people are putting their money in the Algarve’s Quinta do Lago. Now the froth has gone — the annual price rises of 15%-20% have come to a halt — people who have long wanted to own in these prestigious resorts finally can.”
Enduringly popular destinations are characterised by the fact that demand for properties remained strong during the recent crisis, with a drop in enquiries of between 15% and 20%. This mean that, while it was severe, the drop in sales was only ever going to be temporary; to last as long as it took for vendors to realise that the crisis was going to be a long one, and that discounts would be necessary to achieve sales.
In the case of the http://www.propertyfrontiers.com/International-Real-Estate/Country/Portugal/Algarve.aspx“>Algarve property market temporary was about 8 months, from about September 2008 to around April 2009. While the main indices are carrying a decline in Portugal property prices of 5%, in the touristic areas fuelled by foreign buyers, discounts of up to 20% are common in new developments.
This followed statements from international property investment consultancy Property Frontiers. In January director of the firm said:
“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.
Property Frontiers are marketing several discounted properties on the Algarve, including the Academy Villas and Apartments development, on the Vale Da Pinta championship golf course in Carvoeiro. The development is priced at a discount of 20%, equating to 1 bedroom apartments from £200,000. 2 and 3 bedroom apartments are also available, priced from £345,500 and £371,650. Membership of Vale da Pinta and another Carvoeiro championship course worth 35,000 euros is part of the package.