Parque da Floresta in Vila do Bispo in the west Algarve still has some assets to dissolve and the two companies involved in the development are having land and properties sold off at public auction.
Quinta da Colina, Sociedade Urbanizadora has 51 properties under the hammer and Vale da Raposa, Empreendimentos Turisticos has 31.
The property market appears once again to be moving with properties that have been on the market for years, finally finding buyers.
Zoie Hawker from Fine & Country real estate confirmed that things are looking up as more properties at the higher end of the market are selling. “Enquiries are increasing, mostly from the French, British and Germans but sales are regularly held up due to discrepancies in the property paperwork. Lawyers are progressively more diligent in their searches and it can take a long time to sort out any problems.”
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%.
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