Circumstances have combined to make Portugal one of Europe's most tempting property purchase options, a leading estate agency has revealed. Algarve-based boutique agency Ideal Homes Portugal has highlighted the impact that low interest rates and favourable foreign exchange rates have had when it comes to the country's real estate sector. Founding Director Chris White comments,
"We've seen interest rates in Portugal drop from 13.85% in January 2012 to 2.41% in May 2015 and this has led to many mortgage providers slashing their rates. At the same time, the best FX rate for eight years means that UK buyers can now get a lot more property for their pound. It's the ideal combination for those looking to pick up a bargain dream home in the sun."
The low interest rate and excellent exchange rate are set against a background of slowly rising prices in Portugal. The property market has bottomed out since values plummeted back in 2007 and the early stages of a sustained recovery are underway. For British buyers, the timing is perfect - they can purchase property at bargain prices now, when borrowing is cheap and the pound is strong, and then look forward to capital growth over the coming years as the Portuguese recovery gathers momentum.
So just what can British buyers get for their money in Portugal right now?
Portuguese property snapshot
Around €100k is enough for a studio apartment with shared pool in the popular town of Albufeira, which boasts plentiful restaurants and bars, along with some beautiful stretches of golden sand.
€200k will buy a two bedroom apartment with sea views and communal pool in the attractive town of Quarteira or, for those looking to undertake something of a project, a 15 acre plot of land with two country cottages ripe for renovation.
Buyers with €300k can look forward to owning a beautifully renovated apartment in a converted convent in the eastern Algarve town of Tavira. Views over the salt plains of the Ria Formosa natural park stretch all the way to the sea and the stunning Tavira Island can be reached by water taxi in just a few minutes.
For €400k, buyers can purchase a four bedroom villa with its own pool, barbecue area and sea views in the pretty little town of Moncarapacho - home to the world's best olive oil, according to the New York International Olive Oil Competition 2015. Or for just a few euros more city lovers can opt for an exquisite, contemporary one bedroom apartment in Lisbon, in an exclusive development complete with swimming pool and onsite parking.
Those happy to spend €500k have a vast range of options. From a six bedroom country villa with sea views and mature fruit trees to a three bedroom villa with panoramic sea views and its own pool on a gated complex in Praia da Luz, the choices are plentiful and varied. And of course for those with even more to spend the properties keep getting bigger and better.
With the pound to euro exchange rate tipped to climb even higher (Goldman Sachs has forecast that a 15 year high could be on the cards, at €1.54 to the pound by 2017), UK buyers are being delighted by just how far their money stretches when it comes to Portuguese real estate. A rate of €1.54 would mean that only £325k was needed to pick up that €500k Portuguese property - hardly a bad price for a six bedroom home in the sunshine!
For further details call Ideal Homes Portugal on 0800 133 7644 or +351 289 513 434, email enquiries@idealhomesportugal.com or visit www.idealhomesportugal.com.
