Property sales in Portugal offer investors potentially strong returns, if you time your transactions right. A surge of demand from overseas buyers is leading to property price growth throughout Portugal; especially property in the Algarve.
Falling supply and strong buyer response is sparking a healthy interest in the investment property market. This is supported by the latest report from the Royal Institute of Chartered Surveyors (RICS) and Confidencial Imobiliário. The report states there is a growing mismatch between rising new buyer enquiries and falling sales listings.
The advice is simple if you want to secure an investment property in the Algarve: Do your research, have finance in place and seek advice from experienced and expert local agents. Specifically, look for real estate agents with in-depth local knowledge and relationships, alongside a strong portfolio of properties for sale. One Select Properties is ideally positioned to identify and deliver properties to suit a range of investment needs.
With Brexit in the UK and the political upheavals in the US, Portugal is in a unique position to offer investors both political and social stability. According to CBRE, there were more than 130,000 homes sold in 2016, an increase of about 20% over the previous year. However, construction is expected on a growth curve that is not high enough to meet demand.
“Although new projects are coming onto the market, demand is currently outstripping supply,” adds José. “This is good news for investors because the demand will keep pushing up prices. Don’t wait too long if you find a property you love, it may not stay on the market for long.”
CBRE’s report suggests that investment is coming mainly from foreign and private individuals who see the Portuguese property market as a solid investment area. Portugal, especially the Algarve, has always been popular with buyers from the UK. Now, investors come from all over including France, Germany, Scandinavia as well as China and Hong Kong.
Houses for sale in the Algarve rental market
According to CBRE, Portugal registered about 53 million overnights stays, 10% up on the previous year. With more tourists coming to Portugal there will be a strong need for an increase in the rental properties available.
“The forecast for 2017 is for a further 10% increase in visitors although there is only going to be a rise in hotel capacity of 5%,” explains José. “This means the rental market is set to be very busy so now is a great time for property investment.
Finding the perfect investment property in the Algarve is one step closer after you talk to one of our team. One Select Properties are passionate about the Algarve and have the knowledge to help you find a property that will complement your existing portfolio or set you up in property investment for the first time.