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Portugal Property Benefits From Lost Confidence In Spain
September 25, 2009Article by Ray Withers
Portugal property is more popular than it has ever been. This is because of the massive damage done to Spain’s reputation as a second home destination in the last 2 years.Portugal offers many of the same attributes as Spain, including the same climate (approximately), which is considered to be the perfect climate for (mad dogs) and Englishmen. As Brits are the biggest buyers of overseas property in Europe this is a very important factor.
Golf is another. The golf tourism market in Portugal is almost as entrenched and developed as anywhere else in the world, including Spain.Portugal is known for its world class golf courses, and because golf property was already known to be a highly successful model when Portugal began receiving international developers, most of the world class golf courses in Portugal are accompanied by world class property developments.
Unfortunately for property buyers and for Portugal in terms of competitiveness, there hasn’t been the same level of price drops in Portugal as in the likes of Spain, Ireland, the US and the UK.
In fact Portugal was recently rated 12th in a league table of global property markets by Knight Frank. This was because prices had fallen just 1.5% in the 12 months ending Q2 2009. The Knight Frank figures also revealed a 1.7% increase in Portugal property prices between Q1 and Q2 this year, which cancelled out the annualised fall and put Portugal in 10th place on the quarterly table.
Although Portugal property has held its value, there are still some bargains around. Property Frontiers have several properties for sale in Portugal with discounts of up to 20% and 100% finance available.Another factor one must consider when buying a property in Turkey is the current volatility of Sterling vs. the Euro. It had climbed from 1.00GBP/1.07EUR to 1.00GBP/1.14EUR, which made Portugal property over 5% cheaper to British buyers. However it has now fallen back to 1.00GBP/1.10EUR.
That said: such a rapid movement in the word of Forex is usually followed by an equally violent movement in the opposite direction, and analysts believe that Sterling will gain some major ground back in the short-term.
“Not many people would all such currency fluctuations to stop or spur them into buying a property in Portugal, or anywhere else for that matter. However, a major movement in the currencies can give a property instant equity, which can tip the balance and make people take the final step.