By BART VAN LINDEN [email protected]
Bart van Linden is a director of Exclusive Algarve Villas, a local real estate company focused on selling high end properties and investment related real estate throughout Portugal.
With 2009 almost over, we have gone through another year of surprises.
From large bank bailouts to the world’s largest car manufacturer going bust and restarting again (General Motors), and from Dubai going bankrupt to markets in Asia and South America regaining strength and pushing economical growth close to the two figure mark.
The world is a different place, and the change started in November 2007 with the failure of the Northern Rock bank, and many institutions following in 2008 and 2009.
The economical landscape has changed and the game has changed with it. A wise business friend once told me: “If you can win more than you lose, you can stay ahead of the game!” So very true it is.
Many stock brokers have made massive losses in 2008 but with markets rallying ahead of economical recovery, many losses have been recovered in 2009 (or are at least on the road to recovery).
The government stimulus packages have softened the blow of recession, and with modern technologies, the world travels at a faster pace now towards global recovery than in previous recessions. Most likely, markets will remain on a bumpy road for most of 2010 but now there is light at the end of the tunnel.
Real estate markets in various parts of the world are picking up again as investment companies, private equity funds and lifestyle buyers/investors have returned to investing in property, a safe bet.
The baby boomers will still want to move from rainy and cold countries in Northern Europe to the sunny south and are picking up deals where they can. Portugal hasn’t suffered as badly as Spain, and much of the standing stock has been bought up by investment companies already, which have kept prices at a fairly high level and markets stable.
Overpriced properties have been corrected and with discount deals available for property investors, 2010 could be an interesting year. Avid investors will stay ahead of the game by going in before the majority of buyers realise prices are rising or beginning to rise. Looking at the statistics, Portugal is one of the few countries that have seen a price increase in 2009 (source: www.globalpropertyguide.com).
The game has changed and the trick is to change with it before the majority realises what the new rules of the game are.
Bart van Linden can be contacted on 282 353 019, 912 826 969 or email at [email protected]