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Portugal Property Gets A Chance To Shine
October 8, 2009Article by Ray Withers
There was a big fuss made in the press when it was revealed that France and Germany emerged from the recession in the second quarter — both growing by 0.3%. But quietly, and in the background Portugal also came out of recession with a growth of 0.3%.
That is very much the truth about Portugal property; without making too much noise Portugal has grown into one of the most popular places in Europe to buy property. Its closest rival has always been Spain, and until now, until this year Spain has always been coming up on top. But now, with Spain’s oversupply problems laid bare for the entire world to see and the country still languishing in the credit crunch, Portugal really has a chance to shine.
Portugal property prices only fell 1.5% between past year and this year, and they grew 1.7% in the second quarter according to Knight Frank. Thus Portugal has now proven itself a resilient and safe market to invest in, and it will see massive growth in the near future because of this.
Despite prices holding relatively firm, the downturn has still presented the opportunity to find bargains within the country, according to Property Frontiers. Ben Jeffries, a sourcing manager for the firm said:
“Portugal property has gotten expensive in the last few years, though the people who have profited hugely on investments in the country are not complaining about this fact.
“While property prices have not fallen by anywhere near as much as they have in other countries like Spain and the UK, the sales market has contracted and developers are dropping prices on off plan developments. With Portugal’s growth potential now proven, this is an opportunity that should not be missed.”
Property Frontiers are currently marketing several quality developments in Portugal, all are offering discounts and all are offering 100% finance. Their lowest priced offering is the 20% discounted Forte do Vale, offering studio apartments on the Algarve for £155,000. The apart-hotel product comes with 6 weeks usage on an 7% projected rental yield.
“With only 1,100 Euros to reserve, 8% projected rental yields and the developer paying all closing costs, Forte do Vale is a particularly special opportunity,” according to Jeffries.Portugal property prices have already started growing again, according to Knight Frank, which ranked the country 10th in the world on the quarterly chart, with price growth of 1.7% in the second quarter. Now that foreign activity is increasing once again, there is a very small window of opportunity for investors to get in and grab a bargain — the early bird catches the worm.