The latest reports on Portugal’s financial situation may have offered little confidence to UK investors.
However, the bail-out funding, set to assist present difficulties, will in fact be “positive for the country”, says Stephen Anderson, Managing Director of Portugal based property agent Infinito Real.
He said: “Portugal has been an impoverished country for generations so the fact that the EU is now taking notice of this is, in many ways, a good thing.”
Stephen Anderson believes the financial aid will have no knock-on effect on the country’s real estate sector. The property agent said: “Portugal is a recession hit country, but this does not mean that we lose our tourism appeal, a fact verified by a record number of visitors last year, and this year looks set to be no different. The beaches are still fantastic and we are seeing more airlines adding new routes to Portugal, which helps to keep tourism unaffected.”
The property agent thinks there is, in fact, more rental potential for property owners as the Portuguese, who may have been looking to buy, are waiting and now looking to rent, thus increasing owners’ turnover.
In terms of property values, although prices have dropped, reports of 20% decreases this year are, according to Stephen Anderson, simply not a true reflection. “Prices are no longer falling and the news of a bail-out has not jeopardised stabilising prices. Therefore, for investors, Portugal offers sound investment opportunities,” he said. “Many clients have talked about it being a great time to buy in the UK and Ireland while suggesting differently for Portugal. With both the UK and Ireland experiencing their own financial problems, this makes no sense as our situations are very similar.”
He believes the only effect will be the mortgage rates available for non resident buyers, however, he feels confident they are still better than the average UK or Irish rate.
He continued: “Portugal is an incredibly popular place and will always remain so. Once the bail-out is introduced and the terms set then it will be yesterday’s news, and by next year, prices will more than likely start increasing again.”