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Madeira To Bounce Back Hard
March 10, 2010Article by Ray Withers
The Madeira property market is unlikely to be severely affected by the recent flash-floods that killed 42 people at the end of last month. Madeira property demand is very much fuelled by the tourism industry, which local developers have said will be only marginally affected, because of the speed and efficiency with which the cleanup is proceeding.
The impact on the island’s reputation as a tourist destination will be minimised if the cleanup is completed rapidly, said John Ward of developer Morgan Forbes, whose fractional hotel project in the north of the island was unaffected by the floods.
“Tourism is affected by how quickly you can respond to this kind of event,” he told Overseas Property Professional magazine. “If things can be turned around in four or five weeks it will put the scale of the problem into perspective. This definitely isn’t going to set the island back more than that.”
According to international property investment consultancy Property Frontiers, the event should not affect the property market all that badly; director David Cox said:
“Flash floods are given the name flash because they are inherently unpredictable, and as we have seen in the UK many times now they can happen anywhere, practically anytime. Thus, the fact that Madeira has just shown that they can happen there also, is something that will come as no shock to anyone. Therefore it will not become something that will put many people off buying Madeira property.”
Property Frontiers are currently marketing the Azulara Development near the coast in Funchal. Azulara offers the ultimate in 5* luxury, for the surprisingly low price of just £211,000 for a 1 bedroom apartment, £238,000 for a 2 bedroom apartment, and £362,000 for a 3 bedroom apartment. The development features a Concierge, heated outdoor pool, spa, gym and Jacuzzi, restaurant and bar, supermarket, owner’s club, 24 hour security, underground parking spaces and wireless internet access.
The development is well suited to the re-emergence of non-cash buyers, with an 85% LTV mortgage being available, and just 12,437 euros required to reserve and nothing further to pay until completion. There are only 30 units offered on the low down-payment option, which is expected to be very popular. Net yields of 9.7% are being forecast.
Madeira property had seen a massive boost from its being seen as one of the safest places to buy; for being insulated from the international financial turmoil and this is expected to continue after the cleanup is completed.
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