It may be that footballer Cristiano Ronaldo and actress Angelina Jolie know a thing or too about real estate investment as both are reported to be seeking property in Portugal, but they are not the only ones and an increasing number of inquiries are helping to revive the market in a country that has often been ignored in favour of its more gregarious and flashy neighbour, Spain.

But Portugal has never been as brash as Spain and certainly never seen the huge number of apartment and villas that have become one of the causes of the property crash in Spain.

Golf has always been, and still is, one of the big draws of Portugal. It has built up a niche market, according to analysts, and although there are still second home buyers who seek out renovations in small villages, Portugal is associated with golf resorts for many international buyers.

Prices have fallen in the last year in Portugal, down around 5% but its market is more stable than in Spain. Some even say it is more elitist than Spain, with a different kind of buyer, a buyer that takes their time rather than rushing in for a bargain.

The quality of the construction is often described as excellent and while the market has slowed, especially for apartments, the luxury end of the market has held well.

‘The market has been slower. But it is no longer about buying an apartment in a sleepy village. People want more for their money. They want facilities so that they can do something different on every visit,’ explained Brigitte Urbano, Head of Sales at Oceânico Prestige Residence Club which has a number of luxury resorts in Portugal.

In direct response to changing demands the company has added new products including its fractional packages with added lifestyle extras. The freehold properties are divided into fractions and sold to different buyers rather than as a whole to a single buyer. Investors can also use the companies other resorts in other parts of the world for the same cost and use a yacht moored in Lagos port and book an executive limousine to fetch them from the airport that comes with its Residence Club.

‘It is the luxurious touches that buyers want,’ added Urbano.

The slowdown is coming to an end according to Joost Last, director at Pine Cliffs Resort in the Algarve. ‘Economic factors mean that we had experienced a slight slow down in sales in 2008, but we have noticed things pick up considerably moving into 2009,’ he said.

‘Portugal remains one of the most popular destinations for UK overseas property buyers. Investors are realising that unlike other EU countries, Portugal has very strong investment potential and the guaranteed return is definitely encouraging buyers. Portugal is also easy to get to from the UK and hasn’t experienced the corruption and over-development that has recently blighted the Spanish property market which is highly reassuring in the current economic climate,’ he added.

But even in the high end market buyers still seek a good price, according to James Harrison, sales director of Pestana Golf Resorts. ‘Because we are an operator rather than a developer our margins are lower and our prices are competitive,’ he explained. ‘Buyers want the location and the price to be right and they don’t necessarily rush into making a decision. Many of our buyers have played golf at our resorts, they talk to owners on the course, in the bar, and then they might buy several years later,’ he added.

This is typical of Portugal where the boom and bust that has dogged the Spanish market simply did not happen.

Then there is the celebrity factor. Ronaldo currently owns a flat near Portugal’s capital Lisbon and is now reported to be looking to increase his property portfolio in the country. There can be little doubt that the chance of seeking a glimpse of one of the most famous players in the world will be a draw.

Hollywood actress Angelina Jolie is apparently looking for a property near Lagos in the Algarve. Locals claim she is interested in a recently renovated traditional Portuguese farmhouse on a cliff top with its own bridge to a private island.

Infrastructure is also important and with the Algarve being one of the most popular areas for foreign property investors the links from other European countries to Faro airport are vital. It has also been recently announced that the capacity of Faro airport will be increased from six to nine million in the next two years.

Buyers who intend to rent out their property during the tourist season are being backed by the Algarve Tourist Board. According to chairman António Pina, more money is being spent this year promoting Portugal abroad to combat any effects the recession might have on visitor numbers.

There has been a 20% increase in the allocation of funds for the promotion of tourism in Portugal this year – the biggest public push the country has ever undertaken in this area.

Other resorts are becoming more popular. Porto Dona Maria near the picturesque villages of Luz and Burgau some 60 kilometres from Faro airport has panoramic views of the Atlantic Ocean and is well known among Portuguese buyers, with a number of high profile politicians owning villas there.

Portugal has also escaped the kind of illegal building and subsequent demolition debacle that still haunts Spain. Buying is straightforward and annual property taxes are based on a combination of the location, market value and the standard of local services available.

Also according to the European Central Bank property prices in Portugal were not as hard hit as other European countries. For example from June to September last year property prices rose 4.8% compared with the same period in 2007. Similarly in the last quarter of 2008 they increased 4.7% compared with the previous year. Overall, property prices rose by an average of 3.9% in 2008 compared with 2007.

Estate agents have found that fluctuating exchange rates have held UK buyers back but in the last few days an improvement in the fortunes of Sterling against the Euro has re-kindled a lot of interest. ‘Many prospective buyers have decided to buy they are just waiting for an improvement in exchange rates,’ said one long-standing agency in the western Algarve.

In recent months prices have fallen around 4.8% according to the Instituto Nacional de Estatistica but this is small compared with the 20% decreases experienced in much of Spain. Also Portugal never experienced the boom that saw property prices spiralling in Spain from 2001 to 2006.

Portugal is also unlikely to suffer from the kind of oversupply that is causing so many problems in parts of Spain.

This article was taken from PropertyWire.com.

All the Best, PortugalPropertyDeals.com

Former England manager Sven-Göran Eriksson was joined by former world number one tennis player Stefan Edberg at the launch of the Cascade Performance Sports Academies, part of the Casdcade Resort, in Lagos on March 18.

The resort, which is set to cost 100 million euros to build and will employ 100 people in the five-star hotel alone, is due to open by the end of the year and it is hoped that the resort will become a sporting mecca especially for those interested in football, golf and tennis.

Sven-Göran Eriksson will be running the Cascade Resort Football Academy, Stefan Edberg is due to head the Tennis Academy and Alpine skier Martina Ertl will be leading the Recreational Sports Centre.

Sven-Göran Eriksson, Lagos Câmara president Júlio Barroso, CE of the Cascade Resort Urs Wild and Stefan Edberg. Photo: Daisy Sampson.

European Golf Design (EGD), the same design company as used by the PGA European Tour, has created the golf practice area of the Golf Academy.

Sven-Göran Eriksson told the Algarve Resident: “It always feels like coming home for me when I am in Portugal, and I hope that I will now be able to sell my home in Lisbon and buy a new property in the Algarve to be closer to the resort.

“I believe that this resort and academies are going to be very big and I am very happy to be part of such a fantastic project.”

Stefan Edberg reiterated the sentiments of Sven-Göran Eriksson: “I first came to Portugal last year and fell in love with this beautiful country and all the friendly people that I have met.

“I have a very strong belief that this resort will be a success because it is a modern concept and has been developed using vast pools of knowledge, so I am excited to see what we can make happen here.”

The launch focused on the sporting components of the resort but the Cascade Resort will also include a medical centre run by LuzDoc and the Hospital Particular offering various procedures from anti-smoking clinics to plastic surgery.

There will also be a five-star hotel, luxury villas and apartments, a shopping centre, restaurant and spa all located on the picturesque Ponte De Piedade peninsula in Lagos.

CEO of the Cascade Resort, Urs Wild, said: “This is a resort for everyone, not just the Portuguese or just for the foreigners. We want to become part of the local community and want the local people to know that we are here for them and they are able to use what we have at the resort.”

News story taken from the Algarve Resident.

A countrywide clean-up operation on Saturday saw around 100,000 people collecting more than 20,000 tonnes of rubbish.

Volunteers all over Portugal participated in the Limpar Portugal (Clean Portugal) operation, clearing dumped waste from large areas of the countryside.

As well as being an eyesore, the majority of the items collected can lead to serious environmental problems, namely the contamination of soils by hazardous waste, pollution of water resources, especially underground, and degradation of natural habitats.

Patrícia Fava, Portimão and Algarve coordinator for the civic movement, told the Algarve Resident: “The day went much better than expected. I was not counting on the campaign mobilising so many volunteers.”

She said that there were around 3,000 volunteers, 300 organisations and 200 vehicles involved in the Algarve, collecting around 1,000 tonnes of illegally dumped waste and rubbish.

Lagos city council collected 219 tonnes of rubbish, using 480 volunteers spread out over 70 sites chosen for the clearing. The rubbish was taken to ALGAR, the company responsible for solid waste treatment in the region.

A spokesman from environmental association Almargem said: “Rarely has such a large number of people embraced a voluntary activity. As well as being a generous action, Limpar Portugal highlighted quite clearly the potential of volunteering and the concerns citizens have regarding the waste problem in Portugal.”

Isilda Gomes, Faro Civil Governor, who had participated in the parish of Ferragudo in Lagoa council, said: “The clearing of natural areas is vital for the preservation of the environment and everyone’s quality of life.”

The Mayor of Faro, Macário Correia, told news agency Lusa: “It’s an act of great merit, placing thousands of people working voluntarily in the cleaning of forests and the surrounding areas of cities. It is an initiative by the Portuguese population, based on a very good idea.”

At the Pinhal de São Brazão, in Colares, Sintra, the President of the Republic, Cavaco Silva, helped volunteers collect tyres, plastic, furniture, vehicles, rubble and other debris dumped illegally.

“It’s amazing,” he said when confronted with the quantity and variety of rubble.

The President, accompanied by his four grandchildren, his daughter Patrícia and his wife Maria, said: “The most important thing now is not to let this happen again, so that in future it’s not necessary to organise another Limpar Portugal.”

Environment Minister Dulce Pássaro also helped out by collecting garbage at Pinhal do Rei, in Marinha Grande.

She told Lusa: “There are mountains of rubbish in the woods, which is entirely preventable. This only happens due to ignorance or lack of civic responsibility.”

Article taken from the Algarve Resident. www.algarveresident.com

a great property for sale in the algarve

Price: €135,000
Beds: 2
Location: Vilamoura
Country: Portugal (algarve )

Property Profile:

If you have been waiting for a great investment,then the wait is over.

A small development of 46 properties in a privilged location, underground parking, community swimming pool and amenities close by. Built to a high standard by an established developer, properties come with fully fitted kitchens and pre installed airconditioning.

with a starting price so low its worth taking a look.

call 0843 313 3360

2 bedroom townhouse in a quiet residential area in Albufeira but close to all amenities. Partial view to the sea and a small private garden. Only a 5 minute drive to the Albufeira beach makes it perfect as a holiday home or permanent living.

When looking to purchase an overseas property, deciding the best way to pay for your place in the sun can be a challenging one, sometimes the options open to us aren’t very clear. Most people think the only option is to use their savings and don’t explore all the available options. Did you know that as the current Mortgage rates in Portugal are so low, from only 2 % and with current UK saving rates commonly between 3-4 % it is always best to explore all your options!

beach in portugal

Many British and indeed other northern Europeans have continued to buy property in this ‘place in the sun’ for many years and although a large proportion today buy in cash many need to finance the purchase with a mortgage. Up to a few years ago only a limited number of lenders, in Portugal, would consider lending to foreigners. Now things are changing. More banks are realizing that this market is attractive. If a purchaser is non-resident in Portugal they can borrow up to 80% of the value of the property.

With current Euro interest rates been low, a lot of buyers are opting to borrow here as opposed to increasing their borrowing in the United Kingdom. A word of caution however is that borrowing in a different currency means the debt is subject to exchange rate fluctuations. Maximum mortgage repayment terms are typically 15 to 20 years and it is possible to obtain 25 years with some lenders.

Borrowing in later life now tends not to be a problem as it may be possible, in certain circumstances, to obtain a mortgage at the age of 75.

If you are asset rich and cash poor, unlocking capital from an existing owned property, for any purpose, can be achieved by taking out a mortgage. It is however a good idea to look at the whole package being offered as a low headline interest rate might mean a high early redemption penalty and or the requirement of an expensive life assurance. With a lot more choice now available, it means that getting the right deal is very important.

You can use the services of a local mortgage broker who will survey the market and recommend the (best lender based on the individuals requirements) bringing you one step closer to owning that “place in the sun”.

According to the World Travel and Tourism Council the Algarve is set to become the most sought after holiday destination in Europe!

In their summary the WTTC’s analysis of the Algarve said that the Algarve has still not tapped into its full potential, in fact it’s far from it. The Portuguese government are doing all they can to put together an extensive package that will encourage investors to the Algarve, and should have their new plans in effect sometime in the near future.

The WTTC also went on to say that the properties available in the Algarve offer massive value to anyone wishing to purchase now, with capital appreciation targeted at 15% per annum over the next five years.

If you would like further information about Property Position, Price and Potential in Portugal contact us, we will be glad to help.

www.portugalpropertydeals.com

PORTUGAL – Worlds Number One Region For Property Investment

Why Portugal? Location, location, location. The position and ease of access makes Portugal a convenient, inexpensive and quick destination to visit. Don’t forget the Stunning beaches, long summer season, great rental returns and high quality building standards. The first half of 2008 has seen almost 7 million visitors land in Faro airport. With a new airport and additional flights, this is set to increase.

The Algarve is the southernmost region of mainland Portugal. It has an area of 5,412 square kilometres with approximately 410,000 permanent inhabitants, and incorporates 16 municipalities. Thecoincides with the Faro District, and has as its administrative centre the city of Faro, where both the region’s international airport (Faro/Algarve Airport) [FAO] andpublic university (the University of the Algarve) are located. Tourism and related activities are extensive and make up the bulk of the Algarve’s summer economy. Fish, seafood and fruit production, which includes oranges, carob beans, figs and almonds, are other important activities in the region. The Algarve is among the most popular tourist destinations in Portugal, its population more than doubles in the peak holiday season thanks to a high influx of visitors. XXThe Algarve is hilly, but traversed with rich valleys. Its highest point is Fóia, 902 metres (2,960 ft), in the mountain range of Monchique. It is composed of 5,412 square kilometres with approximately 410,000 permanent inhabitants (density of 76 inhabitants per square kilometre). This figure increases to over a million people at the height of summer due to an influx oftourists. The Algarve has several cities, towns and villages. It also includes some islands and islets. The region is also the home of the Ria Formosa lagoon, a nature reserve of over 170 square kilometres and a stopping place for hundreds of different birds.

The region’s capital is the city of Faro. Other cities are Albufeira, Lagoa, Lagos, Loulé, Olhão, Portimão, Quarteira, Silves,Tavira, and Vila Real de Santo António.

The length of the south-facing coastline is approximately 155 kilometres. Beyond the westernmost point of Cape St. Vincent it stretches a further 50 kilometres to the north. The coastline is notable for picturesque limestone caves and grottoes, particularly around Lagos, which are accessible by powerboat. There are many other beautiful and famous summer places such as Albufeira, Vilamoura, Praia da Rocha, Lagos, Armação de Pêra, Alvor, Monte Gordo, Tavira, and Sagres.

Algarve is also famous for its luxury resort & hotel spas by the beach.

In the 1960s the Algarve became a very popular destination for tourists, mainly from Britain. It has since become a common destination for Germans, Dutch and Irish people. Many of these tourists own their own property in the region. There are Algarve-based English-written publications and newspapers specifically addressed to this community. In addition to the natural beauties and plenty of beaches, the Algarve has invested in the creation of a network of golf courses. Well-known beaches in the Algarve range from Praia da Marinha to Armação de Pêra. A well known spa town is Caldas de Monchique.

The Algarve is a popular destination for tourism, primarily because of its beaches,Mediterranean climate, safety and relatively low costs.

Algarve’s mild climate has attracted interest from Northern Europeans wishing to have a holiday home or residence in the region. Being a region of Portugal, and therefore in theEuropean Union, any EU citizen has the right to freely buy property and reside with little formality in the Algarve.^[2] British expatriates, followed by German, Dutch and Scandinavians, are among the largest groups wishing to own a home in this sunny region of Portugal.

Tourism plays an important role in the economy of the Algarve. A large number of seasonal job opportunities are tourism-related and are fulfilled by thousands of immigrant workers from countries like Brazil, Ukraine and Cape Verde, among others.

In March 2007, the Minister of Economy, Manuel Pinho, announced the creation of the “Allgarve” brand, as a part of a strategical promotion of the Algarve as a tourism destination for foreign citizens.