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The Algarve Is Back And All Bets Are Off
October 14, 2009Article by Ray Withers
In the UK the Algarve is almost synonymous with fantastic holidays. Understandably when Brits got the overseas property bug, Algarve property became incredibly popular with British second home buyers and even investors to a certain extent.Unlike Spain; development was kept responsible by the Algarve authorities, demand outstripped the controlled supply, and prices grew rapidly.
Unfortunately — for the market not the owners — prices grew so rapidly that Algarve property lost its ability to compete with similar destinations that offered property at far lower prices. Now, Algarve property is competitive once more, and demand is once again set to outstrip supply in 2010. That is according to international property investment consultancy Property Frontiers, director Ray Withers said:
“Algarve property is well placed to actually benefit from the downturn, which has effectually pressed the reset button on European property prices. Though Knight Frank recently ranked Portugal property 10th in the world for having held its value, developers are still willing to make some good deals on Algarve properties.
“As people come into the market looking for bargains, once again we will see demand outstripping supply and prices will grow again rapidly.”However, Withers also said that today’s buyers are predominantly buying as a lifestyle choice, and that any investors are looking for solid cash-flow rental properties rather than potential for capital appreciation.
Property Frontiers are currently marketing three such properties for sale in the Algarve. The Forte Do Vale development in Albufeira — the tourist capital of the Algarve — comes at a 20% discount, and understandably (given the discount and location) offers a yield of 8%. 1 bed apartments are available as well as 2 and 3 bedroom villas and prices start from £155,000.
Slightly more expensive but also with a 20% discount is the Academy Development, again offering 2 and 3 bed villas alongside 1 bedroom apartments on the Algarve at prices starting from £200,000. The Academy development is blessed with a spectacular location on a championship golf course in Vale da Pinta. The developer is offering membership to the golf course and another local championship course worth 30,000 Euros in total.
Finally, the Condominio Panorama development offers completed 2 and 3 bedroom Algarve apartments with a 20% discount and 7% cash-back. Prices start from £242,000.