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Portugal Not Paltry In 2010
April 12, 2010Article by Ray Withers
Portugal property market is showing signs of recovery, which will build in 2010, experts have claimed. In a recent report on the market, Jones Lang la Salle stated that increased demand, the return of foreign investors and better access to finance deals would all help the recovery to gain strength.
Manuel Puig, MD of the firm’s Portugal division said that as buyer confidence returns and activity begins to pick up the housing market will gradually start heading back in the right direction.
He continued: “By the end of 2009 the extremely pessimistic forecasts did not materialise and the market adapted itself to the new circumstances, which in turn is leading to a return of confidence.”
The report follows similarly good news from themovechannel.com, which reported that Portugal received some 11 million tourists during 2009 and has a growth forecast of three per cent per year until 2017.
While tourism will be a big part of drawing buyers into Portugal property, it will not be the biggest, according to director of international property investment consultancy Property Frontiers, who believes that stability, which has been by far the biggest factor in Portugal’s favour throughout 2009, will continue to drive sales in 2010, he said:
“While property prices in the UK fell 20%-25%, prices in Spain (despite the government’s best attempts at burying our heads in the sand) fell 20%-30%, and prices in Dubai and Latvia fell 40%-50%, property in Portugal fell by — a meagre in comparison — 5% according to the Knight Frank index of global residential property prices.
“This stability in the face of adversity, well, more than that, the fact that it was one of the best performing markets in Europe for nearly 2 years, has made Portugal property the popular choice with today’s risk averse buyer.
Cox agreed with JLLS that the availability of mortgages will be a “big factor” in determining the shape of Portugal’s recovery, he said:
“Don’t get me wrong, foreign buyers can still get mortgages of up to 80% in Portugal, because the banking sector it didn’t suffer the same fate as the likes of the US and Spain, but watching it unfold has still made the Portuguese banks tighten up their lending criteria, especially to foreigners.”
Property Frontiers are currently marketing the Silver Coast Heights development on the coast near Lisbon. The development, which has all the facilities you’d expect from a modern continental resort offers luxury 3 bedroom villas from £428,000.