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Algarve Relaxes the Mind and Frees the Wallet
November 30, 2009Article by Ray Withers
Algarve property is continuing to benefit from increasing activity, especially from British buyers. According to reports from several agents spoken to at a recent networking event, demand has increased 4 fold since April this year.
The main buyer demographic is senior British citizens, not senior as in drawing their pensions — not all of them anyway — but senior as in “of a certain age”. Ray Withers, director of international property investment consultancy Property Frontiers said:
“The current rise in activity is undoubtedly because the full extent of just how bad the downturn is going to be in places around the world is now known. However, this only makes a difference to those who are fairly well off; anyone reliant on their pay cheque to survive month to month or week to week is still a little bit nervous, certainly far too nervous to buy overseas property — that is if they could get the finance anyway.”
It is because of the types of buyer that is currently most active, that Algarve property is currently the 3rd biggest seller in Europe.
“Something about the Algarve just puts people at ease; they feel that this is a safe place to invest. My personal feeling is that this is because foreigners have been buying property on the Algarve for as long as they have the Costas, yet there are no problems with oversupply. This shows that the government is responsible, and that prices will always be comparatively firm on the Algarve,” said Ben Jeffries a sourcing manager with the same company.
The Portuguese economy emerged from recession in the second quarter, and there has also been positive growth in the third quarter according to reports. This is undoubtedly another reason for the popularity of the Algarve.
As is the fact that it is one of Portugal’s top tourism destinations. Another fact about those currently buying property overseas, is that those buying with investment in mind are looking for rental income; cash-flow, not capital growth potential. The yields of 6%, which can practically be taken to the bank in the stability of the Algarve are obviously going to be very attractive.
Property Frontiers are currently marketing several excellent properties on the Algarve, all with 100% finance available and yields of 6% or over. Prices start from £155,000.