News

Portugal property market struggles back on its feet

With the ongoing saga of lifeline bail-outs to eurozone nations, property buyers might be forgiven for channeling their buy-abroad aspirations elsewhere. Yet the latest data from the Royal Institution of Chartered Surveyors suggests a ray of hope for sun-seeking investors: Portugal, where overseas buyers and second-home owners are starting to re-activate their property searches, feeling that, in some cases, the market is showing tentative signs of getting back on its feet.

Although the full impact of austerity measures (bolstered by a £70 billion EU-IMF bail-out package) has yet to fully hit home, signs of life in this default-wary country have been present since the second quarter of this year. A flat-lining economy has been seen as a milestone in the journey of gradual value recovery after two quarters of GDP shrinkage, and, infinitely better than the 1.1 per cent decrease analysts had predicted.

More interestingly perhaps, is the role real estate is playing in the fledgling climb back, boosted by rock-bottom interest rates, government stimulus and record foreign tourism revenue in the first half of the year.

Agents in tourist-centric regions such as the Algarve are reporting an increase in sales volumes, with wealthy clients starting to supersede the bargain-hunting hard core that dominated activity in the latter part of last year.

“The residential market is continuing to dip, with the national price balance falling from -55 to -59,” explains RICS senior economist Josh Miller: “The key difference now however, is that the downward spiral isn’t across the board.”

Have a comment on Portugal property market struggles back on its feet?

Algarve - Best Sun Destination. Irish Travel Industry Awards

The Irish market, highlights the region of the Algarve again by awarding the prize of "Best Sun Destination ’on 27th January, during the 19th edition of the Irish Travel Industry Awards, held at The Westin Hotel in Dublin.

The event was held at the main event in Irish tourism – “Holiday World”- aiming to reward local and international industry in 22 different categories, such as: Best Airline to Europe; Best Long Haul Airline, Best European City; Best Tour Operator Holidays Sun, among others.

According to Algarve Tourism Board, Portugal in this years edition was highlighted with a large delegation of AICEP in Dublin, to be among the nominees for the category of “Best Tourist Board in Ireland” and the Algarve to win in the category of “Best Sun Destination” leaving behind rivals such as Costa del Sol, Florida, Lanzarote and Turkey, nominated destinations for the same category.

For the Algarve Tourism Association, “this award is particularly important to increase awareness of the brand Algarve on the Irish trade, and can leverage some extent, the recovery process of issuing market” considered “decisive on tourism in the Algarve region” and to the national economy.

Have a comment on Algarve - Best Sun Destination. Irish Travel Industry Awards?

Spanish Property Prices Now at Realistic levels

In contrast to the UK, where vendors are still in a state of denial, owners in Spain have finally began dropping their asking prices, according to new data from Idealista.com.

In total, 31% of vendors have dropped their prices with a disproportionate number coming from the cheaper end of the market.

According to Idealista, 134,107 sellers lowered their prices which is 69% more than last year and the sharpest change ever recorded by the portal.

The regions with the biggest number of falls were in Madrid (10.2pc), Zaragoza (9.7pc) and Barcelona (8.8pc).

Girasol has found that the most activity is happening in the Alicante and Murcia Regions.

Have a comment on Spanish Property Prices Now at Realistic levels?

Portugal is cheapest holiday destination

Predictions that the Algarve will experience increased levels of tourism during 2011 have been backed up by the latest Post Office holiday barometer, which declares Portugal to be “The best value worldwide”.

Previous reports have shown that prices in the Algarve have dropped in response to the financial crisis in a bid to attract cash-strapped holiday makers looking for two weeks in the sun and the Worldwide Holiday Costs Barometer 2011 by the Post Office backs up those findings. The barometer monitors the price of eight popular tourist items, including a three-course meal for two, sun cream and refreshments, with Portugal coming out as the cheapest place in the world to go on holiday. Sarah Munro, Post Office head of Travel Money, told the Algarve Resident: “Families looking for the best value in Europe will get more for their money in Portugal. Falling resort costs and a 7.4% rise in Sterling’s value against the Euro saw prices fall by 49% year on year, making it the cheapest in the 2011 Post Office Worldwide Holiday Costs Barometer.” The barometer compared the purchase of a cup of coffee, a bottle of local beer, a can of Coca Cola, 1.5 litres of water, suncream, insect repellent, a pack of 20 Marlboro Lights cigarettes and a three-course meal with house wine for two adults. The total value for the eight items on the barometer comes to £32.84 for Portugal, with the Algarve used as the basis for the survey, nearly €4 less than the next cheapest destination of Spain and half the price of the items bought in Sorrento in Italy. Sarah Munro added: “Over the past two years, the popular resorts in the Algarve have suffered badly from a drop in UK visitors, who have been put off by the prospect of higher costs because of the weak Pound. “Restaurants and bars have responded to this by slashing their prices in a battle for business, while competition between Portugal and Spain combined with the improving exchange rate has resulted in a price crash in Portugal.”

The report by the Post Office not only shows Portugal to be the best value destination of Europe but also the world with 36 countries now included in the barometer including countries in Latin America, Africa and the Far East. The most expensive country was found to be Australia where the items on the list total £157.51, while other countries, traditionally associated with cheap prices, were also more expensive including Malaysia where the cost is now £47.68 and Brazil where the items cost £87.73. By DAISY SAMPSON daisy.sampson@theresidentgroup.com

Have a comment on Portugal is cheapest holiday destination?