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Algarve The All Round Winner
February 17, 2010Article by Ray Withers
The Algarve property, or rather the new build and luxury sectors that target the foreign market continue to benefit from current market realities. Here are five reasons why Algarve property is so popular with those currently buying property abroad:
1: Buyers are Weighing Security Over Return on Investment
That sounds a wee bit daft, but it is true. Yes, investors, or anyone buying property with investment in mind on any level is still looking for the best return they can get. But if it comes to a choice between 2 or 3 opportunities on a shortlist they will choose the one that is most secure, rather than the one offering the highest gain.
There is no safer property market than the Algarve. It has been plodding away with about the same levels of supply and demand while other markets bubbled up and bust. Supply has always been built with actual demand in mind, and for that reason demand has been kept in front of supply on both the holiday rentals and sales sides. Even during the crunch demand was slower but steady on Algarve. This is why there have been no price falls, and why demand has been accelerating since the second half of last year.
2: The Upper-Middle and Upper Classes Have Been Least Affected by Crunch
This is the Algarve’s core market and another one of the main reasons why demand for Algarve property has accelerated so rapidly since the second half of last year. The Algarve is the golf centre of Europe and golf tends to be the past-time of the wealthier among us. Yes, that is a stereotype but it is also a fact; golf is an expensive hobby. So the fact that a larger proportion of the Algarve’s core market has been among the least affected by the downturn is obviously going to be a benefit to the market.
3: Foreigners Can Get Mortgages
This reason speaks for itself: getting a mortgage in a foreign country has never been as easy as getting one at home, but since the credit crunch struck it has been nigh on impossible in most places. Luckily the Algarve is not one of those places. Because of the same responsible practices that kept the property market from crashing, Portugal’s financial sector is in better shape than most countries in Europe and the world. Thus, Finance is as available for foreigners as it has always been.