Tue 21 August 2007
According to the Portuguese Real Estate Association, Portugal welcomes approximately 2 million British tourists each year and around 18,000 British investors are buying property there annually.
There are now 984 holiday homes in Portugal available to rent through holidaylettings.co.uk, almost half of which (442) have been added since January this year, showing how an increasing number of investors are choosing to let out their investment property. “Portugal is the perfect investment spot for investors looking to purchase a ‘mixed use’ property, where they get to spend some time and also let it out to holidaymakers,” comments Ross Elder, MD of holidaylettings.co.uk. “The number of Portuguese properties being let out to holidaymakers is continually growing and not just along the Mediterranean coast.”
With more than 3,760 properties currently advertised for sale on RightmoveOverseas.co.uk there remains plenty of choice. The Algarve has attracted most visitors and investors over the years due to its reputation as one of the best golfing destinations in the world. Villas within walking distance of the beach are a major draw for investors and prices for a 3 bedroom villa in such a situation start from as little as £161,607.
Further round the peninsula, Portugal’s Silver Coast has gained in popularity over the years due to its picturesque fishing villages and laid back lifestyle. Prices for a two bedroom apartment in this region can be bought for as little £51,033. House prices in The Costa Verde, Portugal’s most northern stretch of coastline are Portugal’s cheapest, with prices starting at £39,125 for a one bedroom villa, £60,560 for a two bedroom apartment and £132,688 for a four bedroom villa. However, the area has more to offer those seeking a resale or renovation project rather than a brand new build coastal villa.
“Portugal still has much to offer the overseas property investor,” says Justin Figgins, Head of RightmoveOverseas.co.uk. “Whilst investment opportunities in Portugal remain open to a range of budgets, they are not for the investor looking for a quick buck. Portuguese property is an established market with low risk for medium to high long-term returns. As such, bargains and short term price appreciation are not as likely.”
The Algarve, with its Mediterranean coastline and climate, shoreline villas and relaxed lifestyle, appeals to the holiday home investor whether they purchase for lifestyle enhancement or to attract sun seeking, short haul holidaymakers looking for home-from-home, self-catering accommodation. However, Portugal has over 2,800km of coastline and holiday homes are now appearing in provinces further north equally quickly.
Along the Silver Coast, Obidos is currently the holiday home hotspot. Prices for a week in a two bedroom apartment in Obidos start from £180-£400 depending on the facilities available. The Costa Verde is a breath of fresh air for property investors with currently much less foreign investment than other parts of the country. A typical granite house in the Costa Verde, like Cepoes Villa** sleeps 4 from £307 per week*.
* All prices quoted are off peak, subject to availability and at the discretion of the property owner.
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Notes to editors:
RightmoveOverseas is the UK’s leading overseas property website, advertising 44,000 properties in over 80 countries. RightmoveOverseas is a division of Rightmove.co.uk, the UK’s number one property website, advertising over 1 million properties from over 15,000 estate agents, letting agents and new home developers. It currently counts over 80 per cent of all UK estate agents among its clients, and at any one time displays a stock worth over £170 billion.www.holidaylettings.co.uk provides an effective means of online advertising for holiday homeowners and a user-friendly accommodation search tool for holidaymakers. Advertising more than 16,000 properties in over 100 countries worldwide, the site attracts in excess of 40,000 unique visitors every day and in now part of Rightmove.