After more than three years of house prices decreasing due to the state of the economy, Portugal’s property market is now improving and prices are beginning to escalate.
According to Statistics Portugal (INE) property prices have increased in the first quarter of 2014 by 1.6% for the country overall and 11% for the Algarve and this trend is set to continue over the next 5 years.
Leading UK newspaper the Daily Telegraph, recently ran a very interesting story - "Authoritative research by the OECD highlights property markets in Australia and France as overpriced - but Portugal's a bargain".
The Algarve has seen a very strong start of the year with property sales, rentals and hotel occupancy all returning to very positive levels.
Property sales in the Algarve have mainly been pushed by French buyers under the 10 year tax free pension scheme.
So the Bank of England is watching the housing market closely, with Governor Mark Carney warning at the weekend that the biggest risk to financial stability and the long term economic recovery is an overheating property market.
There were lots of headlines about the huge financial risks, but the most interesting comment for me was the fact that Carney pointed to the root of the problem - not enough homes are being built. As he said, the fundamental problem is a shortage of home and the Bank of England has no solution for that.
Meravista’s latest property market survey reveals that the banks’ valuations of homes across Portugal’s Algarve have risen by 11% in the last three months, with housing prices following the trend and increasing by 13%.
An impressive 5 bedroom villa located in the beautiful countryside of Poço Barreto near Silves. It comprises of a 3 bedroom villa as well as a private cottage with its own entrance, and can be used as a business opportunity by renting out the spacious cottage.
The property has been designed for comfort and is a perfect haven for peace, tranquillity and relaxation. For more information on this villa, click on the picture below.
Summer has arrived and the beach umbrellas are going up! The perfect time to announce that 298 beaches in Portugal have recently been awarded with The Blue Flag.
This is a prestigious award given by The Blue Flag Foundation who work towards the sustainable development of beaches and marinas by enforcing a strict criteria which involves: water quality, environmental education and management, safety and other services.
This week we are doing a feature on countryside properties in the Algarve. These are very popular for buyers who are looking to find the perfect property away from the hustle and bustle of the city.
Countryside properties are located in a tranquil environment, surrounded by beautiful nature and flora. Some properties may even have distant yet amazing sea views.
