Algarve property market has sunny outlook for 2008

Although the international markets are instable and the media is talking us into a crisis the property market in the Algarve, Portugal still has a good forecast for 2008. With many investors shifting from stockmarket investing in a relative mature and secure market as Portugal is a safe investment.

An article published in the resident today also states a simular forcast



Updated: 31 January 2008

Region unaffected by property crisis


Portugal, and particularly the Algarve, seem to be unaffected by the current property crisis that has hit Spain.

By: NATASHA SMITH

natasha@portugalresident.com

DESPITE LAST year’s property crisis in Spain, where more than 100,000 people lost their jobs as half the country’s small real estate agents closed down due to a downturn in sales, the Algarve property market appears to be unaffected.

In 2006, around 40,000 of Spain’s 80,000 small estate agents were forced to close following a dive in sales over the last two years and industry experts believed that this signalled the end of the Spanish property boom, which has been a driving force for the country’s economy for years.

However, others believed that the industry was merely balancing itself out after the market became saturated with estate agents.

Former editor of The Resident, Brian Adams, has had many years of experience in the Spanish property industry and said part of the reason for the downturn is that “buyers are discovering other markets, including Eastern Europe” and with more affordable house prices, they are getting more for their money. “People have grown tired of the same old thing”, he said.

The property market and construction industry appear to be far more regulated in Portugal, Mr Adams said, adding “there was a free for all in Spain”.

“I don’t see why a domino effect should occur in Portugal. This problem appears to be indigenous to Spain”.

He also said that there is still so much green open space in the Algarve and local councils are preserving these areas. “If the Portuguese government has done enough in creating demand, the market will be in a strong position”.

The US Sub prime crisis and the subsequent credit crunch have made people reconsider their investments and hesitate about tying up money in property but Algarve estate agents believe that this will not affect the local property market.

They do believe that buyers are more aware of the potential problems and take longer to consider their options

For more property information also check

Exclusive Algarve Villas - January 2008 Newsletter

http://www.eavillas.com/eav_newsletter/eav_newsletter_200801/eav_newsletter_200801.html