Visita ao Posto da GNR de Loulé pela Srª. Secretária de Estado Adjunta e da Administração Interna - C.M.Loulé - Mira (1).JPG

Great value properties

By Stephen Anderson

Stephen Anderson is the Managing Director of Infinito Real Lda and has a broad knowledge of the real estate industry in Portugal. Having held senior positions in a number of companies around the world, he now lives in Portugal with his family.

Easter is a very popular time in the Algarve and, therefore, as with any holiday period, estate agents find themselves inundated with viewing requests and appointments.

A lot of potential clients take the holidays to look around and get an idea of what’s on offer, although as with all holiday periods, there are huge numbers just wanting to have a nose and see what’s on offer without any real intention of buying.

It’s  these times of the year that can make what seems like a quiet period in relation to sales of property actually appear quite buoyant!

As although not everyone is looking to buy, many too in fact decide to. Especially now when there is so much good property at such amazing prices.

Just the other day, one of our sales executives was raving to me about how many good properties we had to show our clients and it was hard to actually fit them all into a day.

This is fantastic news for potential buyers out there, and it certainly means we are still firmly in a buyer’s market for sure.

With the property shows in the UK starting a few weeks ago, which appeared to come with mixed reviews, one main key point was that the attendees who went were very interested in buying, not just being nosey!

Is there a strong resurgence brewing in the Algarve property market? Well, the simple answer to this is, sadly, no there is not.

However, there is still a strong and sustainable market, as there has never been so much quality product available for such good prices, certainly not in the last 10 years.

By this I don’t mean silly prices, like Spain’s 50%+ discounts. I mean sensible prices, prices that we should have kept during the last few years before the boom hit and developers hiked the prices up because they could.

The loan to value properties, where the whole sales pitch was 100% mortgages, is largely falling apart now due to the banks not being interested in lending that much. But the properties that are available are great value and for those with a deposit to put down, there is certainly money to be made at this point.

I believe that over the next six months, anyone buying a property in the Algarve will make tremendous capital gains over the next five years and with it have a great rental yield in the interim period coupled with a low mortgage rate. And this shows with the buyers that are coming now, looking to put down maybe half the price in cash and use it as a long term investment instead of leaving funds in the bank – and this is a very profitable time for many.

We have a strong history of positive growth here and, despite the political and economic troubles of the country, this does not seem to have had a negative effect on tourism.

Quite the opposite, in fact. Last year was a great year. Jet2.com have just announced a major influx of new low cost flights to Faro and everything looks like we could be set for a very good few years here.

The waiting game is still not over, and it’s still unclear when the world will regain parity, but in the meantime, there is great property to be had for those who know where to look.

Stephen Anderson can be contacted on telephone/fax + 351 289 313 325.
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