It looks like 2010 is going to be a great year for the Portuguese property market if results from a survey by Savills and Home Away, which places Portugal as the third most popular destination for overseas buyers, is anything to go by.
The report, which was one of the largest ever surveys of foreign homeowners opinions, also revealed that despite the economic climate, Portugal remained one of the most popular choices for foreign property investment during 2009.
The popularity of Spain, France and Portugal, especially the Algarve, for overseas buyers was explained by Jo Everett of Savills: “They are quality holiday destinations with excellent residential stock, great infrastructure and ease of access as well as having a trusted legal system and, at the moment, attractive prices.”
A long standing tradition of quality within the Algarve property market and trust in the bureaucratic systems, which have been tried and tested over the decades, has kept the Portuguese property market buoyant while other European markets have sagged during the current economic climate.
In the report it was stated that: “The bulk of the sales in 2010 are likely to be traditional, established hotspots and included selected areas of France, Portugal and Spain (mostly the Balearics). These will typically be locations that appeal to high income buyers and it is unlikely to be a year for speculative off plan buying.”
Ray Withers, the director of investment advisory service Property Frontiers, said: “We are currently seeing a lot of activity, mainly from older buyers who are paying for most or all of the purchase in cash. Many are buying because of the low interest rates on offer at banks and because they are getting a bargain, which makes them feel more secure that they are doing the right thing.”