News

Infinito Real welcomes reports that Portugal is "on track"

Ivan Radford — Thu, 10 May 2012 10:49:00 GMT

A recent report stated that The European Union, European Central Bank and the International Monetary Fund said that Portugal was on track and might be able to stop relying on emergency support by next year. Stephen Anderson, Managing Director of Portugal based estate agent Infinito Real, says that this is great news considering all the negative press surrounding a possible second bail-out for the country, and a reflection of additional signs of an improved economy.

"This is not the only positive indication of development for Portugal in general and also the property market. The banks have started to play their part and we now have a number of them offering a much higher than normal Loan To Value on their own repossessed properties, even going up to 100% of the purchase price with spreads of 2% for non residents. All costs associated to the mortgage deal have now also been reduced with all the valuations and many of the property checks having already been completed."

In addition to this good news, even this early in the year, there have been visible signs of an uplift in tourism and it has been reported that the biggest growth has been seen in the Algarve.

Stephen comments: "In the last few months we have seen a lot of welcomed publicity for the Algarve ranging from the award winning Marina of Vilamoura to Portugal being named the best place to surf in the world. As well as this, Portugal was reported to be the cheapest place in Europe to eat out. All this coupled with low-priced flights and additional route paths into the country from throughout Europe have been wonderful boosts to the area."

The next few of months will establish if all of this will bring additional interest from overseas, but Stephen says that now would be a good time to buy for anyone looking for potential investment opportunities as the lower house prices, a result of the economic downturn, are offering strong rental returns. "On average, rental yields achieved currently are around the 5% mark. In regards to high demand properties such as a beach front villa this has been reaching double figures. A stronger exchange rate versus a year ago also means that prices are even more affordable with a 20% gain to be had on sterling to euros."

Strong lettings activity in Portugal’s weak market

Ivan Radford — Thu, 26 Apr 2012 10:39:00 GMT

Lettings activity is strong in Portugal's otherwise weak market, according to the Royal Institute of Chartered Surveyors and Confidencial Imobiliario report for the first quarter of 2012.

The March Portuguese Housing Market Survey highlights the continued, broad-based weakness of the sales markets - in terms of prices, activity and expectations - but finds a relatively strong rental sector, as tenant demand rises.

In the sales market, although the national price balance improved slightly from -64 to -56 (indicating 56% more respondents experienced price falls rather than rises) it remains very negative. Meanwhile, the national confidence index - which is a composite index based on price and sales expectations - improved slightly from -53 to -48 (a five point rise), but also remains negative.

House price declines continue to be driven by falling demand; rising supply is not presently an issue, with new vendor instructions falling since December 2010. In recent months however, there has been a trend towards stabilisation, increasing the risk that supply may be an additional factor weighing on the market going forward.

The lettings market, meanwhile, continues to benefit from the fallout in the sales market, as households who cannot access mortgage finance are renting instead. Indeed, tenant demand continues to rise and lettings expectations remain robust.

owever, rents are falling and rental expectations are negative. This could reflect an excess of rental stock in the market, but affordability constraints may also be an issue given the macro environment. Moreover, there is also some anecdotal evidence from agents of a mismatch between the type of stock offered to let and that in demand.

CI Spokesman, Ricardo Guimaraes says: "Almost all comments from agents mention the critical impact that financial institutions are having on the market at present. Not only are credit restrictions limiting transaction volumes; banks are also aggressively trying to run down their distressed property inventory, which is being cited as an additional source of downward pressure on residential prices."

RICS Senior Economist, Josh Miller says: "Although sales volumes continue to fall, activity in the lettings market is rising as households who cannot access mortgage finance look to rent instead. However, rents are also declining - in spite of the shift in tenure preference away from owner occupation - which may be indicative of the current stresses on the household sector reflected in a 15% unemployment rate".

Video - IMF sees ‘dark clouds’ over the recovery

admin — Fri, 20 Apr 2012 09:32:00 GMT

The International Monetary Fund's Christine Lagarde has again delivered a mixed message about the global economic recovery and warned "the eurozone is the epicentre of potential risk".

Speaking ahead of the IMF's annual meeting attended by the world's leading finance ministers and central bankers in Washington, Lagarde said: "We are seeing a light recovery, blowing in a spring wind, but we are also seeing some very dark clouds on the horizon - which is another way of saying there is a bit of recovery, timid and a fragile situation with still high risks."

Lagarde said she expects further big contributions to boost the IMF's fund to help safeguard countries from the eurozone debt crisis now that Europe had taken significant steps on its own.

Watch the full report on TheMoveChannel.tv:

http://www.themovechannel.tv/2012/04/imf-sees-dark-clouds-over-the-recovery/

Investment Watch: Dial M for Miami

Ivan Radford — Wed, 18 Apr 2012 13:35:00 GMT

Photo credit: vgm8383

Investors dialled "M" for Miami in March, reveals TheMoveChannel.com's latest Investment Watch. The report, which ranks the monthly level of interest in the portal's listings, saw the Magic City's tenanted condos take top spot, knocking Brazil's February high-flyer down into ninth place.

Investors dialled "M" again for Murcia and Malaga, as Spanish golf resorts took fifth and seventh place respectively in last month's top 10 listings. An equal share of the chart went to buy-to-let opportunities in the UK, with Leicester student accommodation and Cumbrian apartments awakening investors' appetites in eighth and sixth place.

But even though British real estate accounted for five of the top 10 listings in March, TheMoveChannel.com undoubtedly belonged to Miami; the Florida condos received 50 per cent more enquiries than their closest runner-up, a discounted plot of commercial land in England, as the promise of high yields and low prices proved too tasty for investors to resist.

Investors dialling "Mmmmm", however, found a tasty new opportunity in London, as fine wine entered TheMoveChannel.com's listings for the very first time. The drink was downed by enough buyers to become the third most popular investment last month, ranking above even a five-star resort in the Algarve.

Combined with the continuing demand for carbon credits, the unexpected thirst for fine wine suggests that while investors in March were dialling "M" for Miami, they were also pressing "A" for alternative investment.

Director Dan Johnson comments: "Fine wine has never been listed on TheMoveChannel.com before, but the response has been a real surprise. At the start of 2012, the demand for carbon credits suggested that investors were starting to consider more unorthodox investment vehicles for their capital. Since then, carbon credits have been in our top 10 listings for three months in a row. Miami remains the top US destination for property, but it looks like alternative investments are becoming an equally consistent choice."

The top 10 investment properties for March 2012 are as follows:

Rank	Property	Country	Partner
1	Miami tenanted condos	USA	Aspen Woolf
2	UK commercial land	UK	Obelisk
3	Fine wine investment opportunity	UK	TPG Media
4	Five-star coastal Algarve resort	Portugal	Hot Property deals
5	Murcia golf resort apartments	Spain	Casacalida Property Group
6	Tenanted Cumbrian apartments	UK	Best Overseas Property Investments
7	Malaga golf resort apartments	Spain	Best Overseas Property Investments
8	Leicester student accommodation	UK	ROC Invest
9	Luxury townhouse, Rio Grande do Norte	Brazil	Aspen Woolf
10	Carbon credits	UK	Strategic Carbon Solutions

Notes to Editors

Founded in 1999, TheMoveChannel.com is the leading independent website for international property, with than 400,000 listings in over 100 countries around the world, marketed on behalf of agents, developers and private owners.

The website address is http://www.TheMoveChannel.com and the office address is 24 Jack's Place, Corbet Place, Spitalfields, London, E1 6NN.

Contact Dan Johnson on 0207 952 7650 for further information.

Currency Watch: Strong sterling saves Brits 6pc on Greek property

Ivan Radford — Wed, 11 Apr 2012 13:16:00 GMT

In contrast to the first 3 months of the year, March saw the Pound finish higher against all major currencies, good news for buyers of overseas property as Greek real estate is effectively six per cent cheaper.

Some tentative signs of recovery in the UK have helped sterling, while new fears over government debt in Europe (Spain specifically) and structural problems in the US, have kept other currencies weaker. Combined with shifting house values in other countries, the currency fluctuations save buyers on the cost of overseas real estate. A property in Portugal is now nearly 4% cheaper for example, due to recent falling local prices combined with a better exchange rate.

In March, the most improved exchange rate was GBP-AUD, with the Australian Dollar over 4 per cent cheaper at the end of the month. The Aussie has remained very strong over recent history, so this will come as some respite for Brits looking to emigrate to Australia, with property becoming 5.38 per cent cheaper overall.

The South African Rand and New Zealand Dollar rates also posted impressive improvements.

For the mainstream US Dollar and Euro, we have seen modest improvements in rates, and a relatively stable month with the Euro rate only varying (from high to low) 1.53 per cent in March, compared with 2.75 per cent in February.

The recently-reported plummet in Spanish property prices will likely filter through to next month's Currency Watch and we would expect to see the overall cost for UK buyers, particularly in Europe, to become even more attractive just as the traditional season for Brits buying in the sun picks up pace.

Overseas property buyers should be aware of key events coming up in April which are likely to affect exchange rates and therefore their overseas property prices:

• Ongoing: stability or not for the Eurozone - is Spain the next Greece?

• Thursday 5th: Bank of England monthly policy announcement

• Thursday 12th: Trade balance

• Tuesday 17th: CPI inflation

• Wednesday 18th: Bank of England minutes

• Friday 20th: Retail sales

• Wednesday 25th: GDP

Video - IMF chief: Recovery still fragile, despite improvement

admin — Wed, 04 Apr 2012 09:58:00 GMT

The head of the International Monetary Fund, Christine Lagarde, is keeping up the pressure on world leaders and urging them not to become complacent.

Despite signs of financial stabilisation in the eurozone and stronger growth in the United States she said the job must be finished.

"The recovery is still very fragile, the financial system in Europe is still under heavy strain, debt is still too high, both public and private, stubbornly high unemployment is really straining the seams of society, and - to add to the list, as if it wasn't enough, oil prices are clearly another cloud on the horizon."

Speaking at a newspaper industry event in Washington DC, the IMF Managing Director said Europe was in the most fragile state and the world's developed nations should "increase their firepower".

To boost growth, countries should make use of monetary policy, especially with no real signs of inflation in advanced economies, she said.

She was also critical of the United States high public debt levels, currently exceeding 100 percent of gross domestic product. "The country needs a stronger push to fix its public finances in the years ahead, including by curbing the growth of entitlement spending and raising more revenue," Lagarde said.

Watch the full speech on TheMoveChannel.tv:

http://www.themovechannel.tv/2012/04/imf-chief-recovery-still-fragile-despite-improvement/

Experts warn: Euro prime prices are 'too high'

Ivan Radford — Thu, 29 Mar 2012 12:52:00 GMT

Prime property in Europe is no longer driven by fundamentals and looks expensive, warned speakers at the launch of IPD's pan-European Property Fund Index.

At the same time, a panel of industry experts described a cautious optimism about the European macro-economic outlook.

Speaking on the panel, Ben Penalligon, managing director of Prameriga, warned of ‘nosebleed prices' on prime real estate. On the same panel Matt Ridley, director of research at Fidelity's real estate department, described a market where prime assets are defined less by their location than by their lease length.

Sabina Kalyan, chief economist at CBRE global investors, said that prime has become so focused that a large range of attractive investments have been tarred as ‘secondary'. They were joined on the panel by Melville Rodrigues of CMS Cameron McKenna.

Ridley described a European property market where the bulk of returns will come out of income. He said that the strong growth seen in the years of 2005 to 2008 would come to be seen as the aberration, rather than the rule. Ridley characterised the market as one which was not driven by fundamentals.

In her talk on the European economic outlook, Sabina Kalyan, who described herself as "habitually bearish" on the European economy, struck a note of cautious optimism. She was positive about the effects of the LTRO, and praised the new willingness of the ECB to intervene, saying that "the European Central Bank under Draghi is a very different beast". Although Kaylan believed a default by Portugal, and a second default by Greece, were highly likely, she pointed out the controlled nature of the first Greek default, which saw the risk fully priced into markets before the event.

However, Kalyan went on to warn of the seemingly unsolvable problem of the debt to GDP ratio: cutting debt can restrict growth, keeping the ratio steady even as debt is reduced. She warned that the real risk to the European economy was not economic but political, with the Greek government struggling to enact further belt tightening in the face of a disgruntled populace. At the same time the "beer countries" of Northern Europe need a weak euro to maintain their exports, even as the "wine countries" long for a devalued currency.

Kalyen described prime office property as significantly overpriced, although tactical opportunities might still exist. She believes that industrial prime in Amsterdam, Paris and Hamburg look more appealing, as do shopping centres, although she believes that investment might be hampered by liquidity.

Her conclusion was that though the ECB has prevented a ‘Lehman style crisis' the prospects of recession in the near term and below trend growth in the medium term would translate to falling rental values, and rising yields.

Source: investment Europe

El-Erian: Portugal may be the next Greece

admin — Tue, 20 Mar 2012 03:15:00 GMT

Frankfurt - Bond fund giant Pimco's chief executive said he expected Portugal to be the next eurozone country to falter, according to an interview in German weekly Der Spiegel.

Asked whether he expected Portugal to have become the next Greece by the end of this year, Mohamed El-Erian told the magazine: "Yes, unfortunately that will be the case".

Portugal's economy is forecast to contract 3.3% this year - its deepest slump since the 1970s - as the government implements austerity measures under a €78bn (£65bn) bailout from the European Union and International Monetary Fund (IMF).

El-Erian, also co-chief investment officer of Pimco, said he expected Portugal's first bailout package will be insufficient, prompting it to ask the EU and IMF for more money.

Source: Fin24.com

Infographic – Portugal: At a Glance

Ivan Radford — Wed, 14 Mar 2012 13:30:00 GMT

The Algarve is Portugal's most popular property destination, according to the latest At a Glance infographic from TheMoveChannel.com.

The infographic, which is based upon buyer activity on the property portal in the last 12 months, shows that the region accounted for a staggering 62.59 per cent of all Portuguese property enquiries since March 2011. Indeed, the demand for Algarve property is five times stronger than that of its closest competitor, Leiria, which received 12.4 per cent of enquiries in the past year.

11.41 per cent of buyers also showed interest in the islands of Madeira but the At a Glance map reveals the extent to which the Algarve dominates, leaving many inland and northern areas of the country to attract less than 1 per cent of investors' interest. The Guarda district in the North-East received no enquiries at all, indicating a significant lack of buyers and sellers in the district.

Comparatively, the Algarve's market is thriving. The region contains six of Portugal's most searched-for destinations, with Albufeira accounting for 9.63 per cent of property searches; almost double that of Lisboa's runner-up Cascais.

Click here to see the full infographic

The infographic also analyses Google behaviour over the last 12 months. Buyers tend to search for "property for sale in Portugal" and "property in Portugal", with peak activity occurring between the months of March and August.

There is a striking surge in searches for "villas for sale in Portugal" during the summer but throughout the year, the most popular type of real estate are houses; the phrase "Houses for sale in Portugal" consistently appears in more searches than "villas" and "apartments" combined. Surprisingly, there are no searches for "real estate in Portugal" or "Portuguese properties" for much of the year, the keywords only being entered into the search engine in February 2012.

Editor Ivan Radford comments: "The At a Glance infographic reveals the importance of The Algarve to Portugal's property market right now. A key tourist destination, the area is visibly driving demand from overseas buyers, either for holiday homes or for buy to let properties to capitalise on the influx of foreign visitors. Lisboa and Leiria are still relatively popular with buyers, but for Portugal's market to fully recover, that band of red in the South needs to get even brighter."

Notes to Editors

The website address is http://www.themovechannel.com and the office address is 24 Jack's Place, Corbet Place, Spitalfields, London, E1 6NN.

Contact Dan Johnson on 0207 952 7650 for further information.

S & P predicts end to economic crisis in Europe in 2012

admin — Mon, 12 Mar 2012 13:30:00 GMT

The credit rating agency, Standard & Poor’s, believes that the European macroeconomic crisis will not extend beyond 2012, which will result in a “significant recovery” of European real estate markets in 2013.

“Standard & Poor’s Ratings Services believes that the macroeconomic crisis may not extend beyond 2012. We still expect a new recession in Europe, although we believe it will be mild, with a gradual return to growth thanks to the growing demand from emerging countries, the strength of demand in developed countries and the restoration of investor confidence,” said the company.

According to El Economista, the baseline scenario of S & P considers there will be a flat growth of the economies of the eurozone as a whole, with growth of 0.5% in France and 0.6% in Germany, while in UK the gross domestic product (GDP) will grow by 0.5%.

Source: Kyero.com

The bigger picture: A brief history of real estate

Ivan Radford — Tue, 06 Mar 2012 13:34:00 GMT

Photo credit: Movoto

Who was the first investor in overseas real estate? Alexander the Great, according to this new infographic by Movoto. The diagram charts the history of property investment all the way back to 334 BC, when Alexander conquered Persia and seized land by force.

Decades of aggressive property acquisition followed until 1855, when the first US real estate brokerage was formed by Baird Warner and houses were bought and sold in a more civilised manner. The word "realtor" was invented by agents 61 years later.

Compared to those early days, the property industry now is completely unrecognisable. The Internet, Google and property portals have transformed the market, with property listings publicly available for anyone to browse: a far cry from Alexander the Great's days of invading and pillaging.

But the infographic is sharp reminder that history repeats itself, highlighting the Great Depression of 1929, when the financial crash caused the real estate market to collapse. As the world's economies recover from another recession, the fallout is summed up succinctly by the chart: "2010 to Present - Foreclosures and Short Sales become the dominant listing type in the market".

Here is the full infographic:

(Click here to see a larger version.)

Déjà vu may not be a bad thing, though, according to Currency Index, as the Euro crisis offers British investors more favourable exchange rates.

"For example, a British cash buyer can now pick up a bargain in Greece for nearly 5 percent less than in recent months," reveals the broker's latest Currency Watch report, "a saving of over £8,000 on a property which was on the market for €200,000."

The second biggest price drop is found in Portugal, adds the report, where real house values have reduced overall by 2.28 percent, despite the currency improving by 1.14 percent. With overseas demand for Portuguese property tripling at the end of 2011, will 2012 go down in history as the year in which real estate recovered from recession?

Is this the year when you buy a new house?

http://www.themovechannel.com/property/all

Currency Watch - Greece, Portugal & Spain are best bets for property in March

Ivan Radford — Tue, 06 Mar 2012 13:32:00 GMT

Currency Index look back at exchange rates in February, and the headlines likely to be affecting rates in March for buyers of overseas property.

February saw the Pound finish the month lower against all major currencies except the US Dollar, where rates improved by 1.08%. The EU bailout of Greece was the main news theme, with austerity measures being passed by the Greek parliament, and relative stability in the Eurozone being the outcome, giving a slightly stronger (more expensive) Euro.

The South African Rand was the most volatile currency, with a range of nearly 4% during February, while the Canadian Dollar was the most stable rate.

The South African Rand also showed the biggest increase in cost, with a Pound going over 3% further at the beginning of February compared to at the end of the month.

While the Greek bailout continues to impact the Eurozone's stability, Currency Index advises overseas property buyers to be aware of key events in March, such as the UK's quantitative easing decision on Thursday 8th March. These events are likely to affect exchange rates and, therefore, have a significant impact upon property prices.

Indeed, applying the recent exchange rate changes to local property markets around the world reveals the real impact upon cost for British buyers. For example, a cash buyer can now pick up a bargain in Greece for nearly 5% less than in recent months - a saving of over £8,000 on a property which was on the market for €200,000.

Brits will be pleased to know that the traditional locations of Greece, Portugal, Spain and the USA have all reduced in price recently, despite exchange rates generally failing to improve further in February.

Portugal property buyers should "seek expert advice"

Ivan Radford — Fri, 02 Mar 2012 12:45:00 GMT

Photo credit: Melenama

property in Portugal has surged in popularity in recent months, with buyers rushing to pick up low-priced houses in familiar tourist areas. But with Eurozone concerns hanging in the air and real estate values fluctuating, buyers are being advised by agents to "seek expert advice before making a trip".

The country's economy is struggling to recover, but property has never been more affordable for overseas buyers. Indeed, prices have reduced by up to 50 per cent in the last three years. As a result, year-on-year viewing figures for Infinito Real tripled at the end of 2011, as investors looked to capitalise on the demand for rental property in holiday home regions such as the Algarve.

But even rental laws have been subject to recent reforms, with the Portuguese government attempting to streamline rules for foreign property investment last year. The market is ready for buyers, but buyers may not be ready for the market.

As a leading law firm in Portugal with specialist knowledge of real estate, Alexandra Soares can provide prospective investors with fiscal advice and legal services in the acquisition of property.

Indeed, Infinito Real Managing Director Stephen Anderson admitted to Property Wire that "in the cases of many of the clients who have visited us over the last couple of months ... some would have been in a more proceedable position if they had spoken to an expert on their finances beforehand".

With interest tripling and prices halving, Portugal's property industry will be hoping that new buyers do not make the same mistake.

Investing in property in Portugal?

Contact expert Portuguese lawyers through our dedicated legal services channel:

http://legal.themovechannel.com/conveyancing/portugal/

Christie's powers into central Portugal

admin — Tue, 28 Feb 2012 08:35:00 GMT

International agency network Christie’s has made Lisbon’s Porta da Frente brokerage an affiliate to the group as the luxury homes seller senses new opportunities to sell to wealthy Brazilian investors across the central regions of Portugal.

Director of Affiliate Services for Europe, Middle East, and Africa for Christie’s International Real Estate, Joachim Wrang-Widén, told OPP this week that “the cosmopolitan and relaxed lifestyle of Portugal’s Cascais and Alentejo regions is increasingly becoming desirable to affluent second-home buyers from Brazil.”

“Demand is particularly strong from Rio de Janeiro, São Paolo and Belo Horizonte. Russia and Northern Europe are also strong buying markets in these regions.”

Christie’s International Real Estate is an invitation-only affiliate network with 130 member agencies in Europe; North, Central, and South America; and the Caribbean, as well as Asia, Africa, and Oceania.

Source: OPP.org.uk

Investor appetite grows as commercial foreclosures keep rising globally

admin — Tue, 14 Feb 2012 13:00:00 GMT

While investor appetite rose dramatically towards the end of 2011, the level of distressed properties* coming to the market is set to keep on rising globally, according to RICS.

Released today, the latest RICS Global Distressed Property Monitor reveals that two thirds of the countries surveyed anticipate a rise in forced selling of commercial buildings for the first quarter of 2012. Unsurprisingly, the number of commercial foreclosures is set to rise at the fastest pace in the Euro area.

Once again, the countries at the centre of the eurozone debt crisis are worst hit. The Republic of Ireland, Portugal, Spain and Italy expect the highest number of foreclosures. As previous reports have shown, the highly volatile economic and financial context has started to affect steadier markets. Property professionals in France and Germany also anticipate more distressed selling.

Source: Property-Magazine.eu

Can creative thinking help Portugal’s property market?

Ivan Radford — Mon, 06 Feb 2012 14:30:00 GMT

Photo credit: Melenama

International house hunters may have heard of Felice Cohen, the woman who adapted to fit her life in a 90-square foot apartment in New York. Recording a video of her cramped conditions, her creative solutions to survive in the tiny property soon went viral. Now, as Ms Cohen finds herself able to afford a full-sized New York home, her unique approach to real estate finance has been hailed as “an inspiration to penny-pinched tenants across the world”.

Indeed, it’s not just in Manhattan that people are thinking outside the box. Investors in Portugal have come up with an innovative way to solve the problem of bank financing: side-stepping the banks altogether.

Portuguese agent Infinito Real revealed that "a few savvy developers" are coming up with an "alternative method of funding" to invest in the country’s real estate, arranging their own loans so they can afford to purchase property.

"The demand is there but financing is still proving difficult," Infinito's Managing Director Stephen Anderson comments. "However, recently we have seen a few savvy developers offering an alternative method of funding to avoid the stumbling block of acquiring finance from the bank, thus helping to get the property market moving."

The new approach sees investors place a deposit of 30 per cent, according to Property Wire, and then agree with the developer to pay off the remainder free of interest over several years. The investor can sign the deeds as soon as the deposit has been made, allowing them to own the property straight away.

Anderson adds: "This developer funding method is aimed at a variety of investors but is generally ideal for those people who are able to get finance in 12 months, just not now."

The innovative bank-hopping follows signs of other investor strategies to cope with the euro crisis. Buy-to-let investment has seen a recent surge in activity as buyers seek to fund their property purchases. Indeed, a RICS report from last month showed that letting demand was still strong in Portugal with the buoyant rental market experiencing "robust demand and strong transaction expectations".

Talking exclusively to TheMoveChannel.com in January, Portuguese agent CSF Property outlined positive hopes for 2012: "Portugal has been quite sensible. They've raised taxes, they're spending, they haven't spent as much on Christmas and roads and things like that and we're starting to see some light... There's no oversupply here and that's the one thing that's saving the market."

Portugal remains one of the most vulnerable economies in the Eurozone after Greece, but if investors and developers continue to think outside the box, could creative thinking be the second thing to save the property market this year?

Looking for a bright investment idea?

Browse our listings of houses, apartments and other property in Portugal:

http://portugal.themovechannel.com/property/all

Strong lettings demand in Portuguese property market continues

admin — Thu, 26 Jan 2012 03:35:00 GMT

A buoyant lettings market in Portugal continues to benefit from a weak sales market as tenant demand remains strong and rental values continue to decline, according to the latest RICS/Ci Portuguese Housing Market Survey.

The December survey, published today (Wednesday 25 January), shows that the sales market remains subdued, with demand, supply and prices continuing to fall. That said, sales activity whilst still falling, did so at a slower rate than November.

The National Price balance moved from -70 to -66, while the National Confidence index improved slightly, from -60 to -52.

With new vendor instructions continuing to fall (supply), house price declines are being driven primarily by anaemic demand, says the report.

Source: PropertyWire.com

7 things that won’t happen in 2012

Ivan Radford — Fri, 20 Jan 2012 13:11:00 GMT

As Europe continues to struggle with debt, the future of global property is increasingly uncertain. Reports suggest gradual recoveries one week, financial slides the next, while some people still believe that the world will end in December. With potential apocalypse on the horizon, how do you know what property to buy or where to invest?

To clear up the confusion, here are seven things that won't happen in 2012:

London cancels the Olympics

Photo credit: SouthEastern Star

The stadium has been built, the athletes have started training and the invitations have been sent out. London can't back out now, even with the UK economy struggling. Whatever happens in 2012, the Olympics will go ahead, and the Olympic village homes will hit the market. Good news for sports fans - and for landlords in East London, where property values are likely to pole vault upwards.

No-one goes to university

Photo credit: Tulane Public Relations

Fees are rising and unemployment is at an all-time high, but even if British youth are losing interest in higher education, foreign students are still applying to study in Britain. Indeed, two separate agencies (Knight Frank and CBRE) have both recently shown demand for student accommodation rising, with occupancy rates at 99.9 per cent and cities outside of London with more than one university highlighted as having the cheapest prices and the highest yields.

Everyone gets a job

Photo credit: John Keogh

2.68 million people are now unemployed in the UK - a 17-year high for the country. With government spending cuts in full force, lots of residents will be without a job during the coming 12 months. The same is true of many countries around the world as austerity measures are enforced. As first time buyers struggle to finance a new UK home, rental demand and rates may continue to increase, further strengthening the opportunities for buy to let investors.

Foreclosures finish forever

Photo credit: Sean Dreilinger

Foreclosure rates are beginning to decline across America. But even in states such as Las Vegas, where property sales are breaking records, there a large housing supply left to shift. The US government are now proposing to sell off bank-owned homes in large numbers to companies for letting, but whether you buy in bulk or invest in a single property, 2012 will still see foreclosures in America - and around the world - offering cheap property for overseas buyers.

No-one in the UK retires

Photo credit: Garry Knight

The default retiring age has been abolished in the UK, but people won't work forever. In fact, 22 per cent more people will retire this year, according to the Department of Work and Pensions, as the number of post-war baby boomers reaching retirement age is expected to jump by 150,000. Active living resorts in France and other countries will hope to soak up the over-50s market, while commercial property investors will hope to soak up the profits.

Someone solves the Eurozone crisis

Photo credit: Eisenrah

Bailouts and bonds are trading hands as quickly as new governments are elected, but the Eurozone crisis is far from over. Deficits plague everywhere from Spain to Cyprus and while France and Germany may be expected to stay resilient, the unpredictable markets can create unexpected options for careful investors. Portugal, for example, saw a surprising surge in buy to let investment at the end of 2011, while Spain's house prices remain low enough to attract lifestyle buyers looking for affordable holiday homes.

People stop buying property

Photo credit: Images_of_Money

The markets may be slow and the Eurozone crisis may cause concern, but people are still turning to property for a secure place to put their money. London's real estate market continues to be driven by wealthy overseas buyers looking for an investment safe haven and if 2011's record-high prices for prime city property are a reliable indicator, that is definitely set to continue this year.

Unless, of course, the Mayans were right all along.

Hunting for a new home in 2012?

You don't need a crystal ball to browse our listings of houses, apartments and other overseas property:

http://www.themovechannel.com/property/all

Europe dominates Brits' wanted list according to exhibitions' poll

admin — Fri, 20 Jan 2012 13:08:00 GMT

British overseas buyers still retain Spain as their preferred foreign hotspot for purchasing property according to A Place In The Sun’s (APITS) recent exhibitions’ poll.

The research, conducted at APITS’ Live exhibitions in London and Birmingham, revealed Spain as the top destination, followed by other European countries France, Portugal and Italy. The United States completed the top five.

Liz Rawlinson, editor of A Place in the Sun magazine, said that the survey revealed "UK buyers as sticking to tried and tested European countries – yet also willing to travel further to destinations such as Florida and the Caribbean to find the perfect holiday destination."

Source: OPP

Portuguese agency expands to cope with surge in overseas demand

admin — Wed, 11 Jan 2012 09:45:00 GMT

Portuguese agency Infinito Real has taken on four new members of staff to cope with a surge in activity as “cheap prices and high-interest savings accounts attract seasoned investors and amateur overseas landlords to the market.”

Viewing rates in November and December mushroomed three-fold year-on-year and “appointments were up 10 times more than that.”

Infinito Real managing director Stephen Anderson welcomed the upturn, telling OPP this week that “what's unusual this year is that booking levels are such that we are busy right through December, even over Christmas, which is traditionally quiet within any property market.

“In the last month I have taken on four new members of staff to ensure we are able to continue providing a personal service for those coming over to view properties.” And, “in contrast to previous years, bookings are predominantly investor orientated rather than the usual holiday home enquiries.”

Source: OPP.org.uk

Portugal property sales see fall in demand

admin — Fri, 06 Jan 2012 05:48:00 GMT

Property for sale in Portugal has seen a fall in demand, prices and supply, the November Royal Institution of Chartered Surveyors (Rics)/Ci Portuguese Housing Market Survey (PHMS) has revealed.

The survey showed that November experienced the fastest decline in sales activity since the report began in September 2010.

In particular, the survey notes that new property in Portugal is undergoing a change, with prices falling more rapidly than they were prior to September.

During November, prices for new homes dropped faster than those for existing domiciles.

Source: PropertyShowrooms.com

Portugal price drops prove positive for buy to let

Ivan Radford — Mon, 05 Dec 2011 12:40:00 GMT

Photo credit: Somma1977

Portugal's property market has been suffering for some time. House prices and sales volumes continue to decrease and confidence in the country's economy is low. But this downward spiral has prompted a surprise surge in demand - from buy to let investors.

The unexpected positive signs arrive just as the National Confidence Index falls even further. Dropping from -53 to -60, the recent RICS survey of the Portuguese market found that confidence in the real estate industry is still overwhelmingly negative. Indeed, this lack of confidence has sapped demand, leaving house prices to drop steadily across the country.

So far this year, the one bright spot for Portugal has been tourism. Resorts in the Algarve "have remained unaffected by the crisis", consultants Fine & Country told the OPP last week. Now, that steady flow of tourists has seen buyers swarm to the region, looking to capitalise on the popularity of rental accommodation.

As a result, property agent Infinito Real has seen its bookings triple in November compared to 2010. For December, meanwhile, the number of bookings is up tenfold.

Managing director Stephen Anderson told Property Community:

"October and November are historically busy months for Infinito Real with bookings usually made by tourists returning to the cold UK after their summer break and contemplating purchasing a second home in the sun. What's unusual this year is that booking levels are such that we are busy right through December, even over Christmas, which is traditionally quiet within any property market."

This change in attention has seen them flooded with enquiries. "In the last month I have taken on four new members of staff," Anderson added.

He explains that the profile of a buyer has shifted, from lifestyle buyer to buy to let investor: "Other visiting tourists are starting to realise the rental potential over here and considering buy to let over other forms of investment."

The buy to let boom was highlighted by the RICS report last week, which analysed Portugal's lettings sector for the first time. "An increasing number of households in Portugal are turning to rented accommodation as they are unable to buy a home", Property Showrooms observed, as Portugal enters a similar situation to the UK.

At the National Landlords Association's conference last week, it was declared that the private rental sector was a key element in the UK housing recovery: "Housing is definitely at the top of the Government's agenda and the private rented sector is in the middle of all of that," said the Director of Housing Growth and Affordable Housing. "We know that demand is continuing to grow and the sector has responded to that, expanding to about 3.4 million households in England, which is an increase of one million since 2005."

This demand, coupled with the UK's status as a secure economy and record high rents, has seen buy to let investment rocket upwards. But the latest figures from RICS and Infinito Real reveal a surprise overseas alternative for prospective landlords.

As house prices fall, cheap properties in Portugal have the potential for strong yields in the peak tourist season. And with rentals on the rise, particularly within the Algarve, Portugal's plummeting property market may have found a plus side after all.

Interested in buy to let opportunities abroad?

Browse our listings of houses, apartments and other Portuguese property:

http://portugal.themovechannel.com/property/all

Global housing markets struggling

Ivan Radford — Mon, 05 Dec 2011 11:29:00 GMT

The world's housing markets had a weak third quarter of 2011, according to the latest survey of worldwide house price indices prepared by the Global Property Guide. During the year to end Q3 2011, house prices fell in 25 countries (out of the 44 for which quarterly house price statistics are available) and rose in only 19.

Moreover, 26 housing markets performed more poorly during the year to the third quarter than last year, while only 18 countries performed better.

The Global Property Guide's statistical presentation uses price-changes after inflation, giving a more realistic picture than the more upbeat nominal figures usually preferred by real estate agents.

What is most remarkable this quarter is the wide variety of outcomes:

Brazil and India booming

India and Brazil's housing markets have continued their spectacular outperformance, with Delhi house prices up 22.68% during the year to Q3 2011, according to National Housing Bank (NHB) figures. There were strong house price increases in almost all India's major cities, reflecting the country's current high rate of consumer price inflation, despite a drop in demand resulting from the repo rate hike in October (currently at 8.50%), the 13th since March 2010, making home loans costlier.

Brazil's Sao Paolo had the second highest house price rise in the world during the third quarter, with house prices up 5.88% during the quarter, according to the FIPE- Zap price index. Sao Paolo had an astonishing year, with house prices up 20.26% during the year to Q3 2011. The country is experiencing an unprecedented boom, not least because it is the host country for the World Cup in 2014 and the Olympics in Rio de Janeiro in 2016.

Europe's mixed housing markets

The world's second strongest quarter-on-quarter house price rise occurred in an unexpected city - Vienna, where house prices surged by 5.44% during the quarter (and +4.25% on the year), continuing 6 years of nearly unbroken price rises for Austria's capital.

The Baltics have also performed strongly. Latvia is the third best performer among all reporting countries in our survey over the twelve months to Q3 2011. In Riga, standard type apartments rose 13.31% year-on-year, a quick comeback after a fall of 5.40% in the second quarter.

Following Latvia was Estonia, whose housing market is rallying after three years of terrific losses that began during the onset of the global financial crisis. During the year to end Q3 2011, house prices in Tallinn were up 12.30% with a quarterly rise of 2.71%.

Other European markets which have enjoyed satisfactory increases were Norway (+6.74%), France (+4.80%), and Switzerland (+3.35 %).

Modest house price increases were seen in Slovenia (+0.82%), Iceland (+0.76%), Germany (+0.66%) and Luxembourg (+0.55%) in the year to Q3 2011.

Ireland stays weak

The Irish housing market remains the world's weakest performer. House prices were down 15.61% year-on-year, the steepest decline since 2008. Quarter-on-quarter, Ireland's house prices slid 4.25%.

Several other European housing markets experienced accelerated downturns during the year ending in the third quarter of 2011, including Netherlands (-5.20%), Portugal (-6.77%), Slovak Republic (-7.94%), Warsaw, Poland (-7.95%), Spain (-8.41%) and Bulgaria (-9.65%).

Conversely, European countries which saw slower house price falls this year than the previous year include Turkey (-0.50%), Russia (-3.47%), Croatia (-4.59%), Hungary (-4.67%), Athens, Greece (-6.57%) and Kiev, Ukraine (-7.02%).

Asian housing markets now cooling

In Asia, several countries had house price increases during the year to end Q3 2011, albeit less strong than last year, following the government measures to curb the heat in their respective housing markets.

In Hong Kong, house prices were up 12.07% year-on-year, after a rise of 19.30% the previous year. In Malaysia, house prices rose by 3.15% year-on-year, after a rise of 5.76% during the same period last year. In Singapore, house prices rose by 2.73% year-on-year, a big drop from last year's 18.96%. In Taiwan, house prices were up a mere 0.46% year-on-year, after a rise of 6.97% during the same period the previous year. During the latest quarter, house prices were down 7.02%.

However, housing markets in South Korea and Philippines (Makati CBD) improved from a year earlier with price rises of 1.55% and 0.89%, respectively.

In Japan (Tokyo) and China (Shanghai), housing markets have been deteriorating since Q1 2011. House price declines are being reported across China, indicating the success of government measures during the past year. The country's skyrocketing housing prices have been blamed for social tensions and other economic problems.

Patchy progress for North America

The Canadian housing market has been a notable performer in the year to Q3 2011, with house prices in the six cities rising by 3.25% year-on-year, according to Teranet - National Bank Composite House Price Index. Record-low interest rates and a fairly stable Canadian economy have bolstered consumer confidence in the housing market. During the third quarter, house prices were up 3.46%.

In the United States, the housing market drifted lower as house prices plummeted by 7.22% (seasonally-adjusted) year-on-year to Q3 2011, according to the Federal Housing Finance Agency (FHFA). However, the number of homeowners who owe more than their homes' worth decreased modestly in the third quarter, though levels remained high.

Israeli house price boom now over

House prices in Israel fell 0.58% in the year to Q3 2011, the first drop since 2009. During the latest quarter, house prices were down 3.65%.

The moderation in home prices comes against the background of the continued increase in the number of building starts, the lagged effect of the increase in the interest rate, measures introduced by the Bank of Israel affecting mortgages, and steps taken by the Ministry of Finance in real estate taxation. The effect of these moves is expected to continue and be evident going forward.

Pacific housing markets heading down

In New Zealand, median house prices were down 4.30% from a year earlier, with a quarterly house price fall of 2.26%. However, there is optimism in the housing market buoyed by low interest rates and recovery following earthquakes in Christchurch.

High interest rates and global economic uncertainty have continued to impact the Australian housing market, and it slumped 5.55% in the year to Q3 2011, the third quarter in which annual house price falls were reported this year.

Accordingly, the Reserve Bank of Australia (RBA) lowered the benchmark interest rate in November, the first time since April 2009, moving to boost the nation's economy amid uncertainty stemming from Europe's debt crisis. The benchmark rate is currently at 4.50%.

Video - Where next for the eurozone?

admin — Fri, 25 Nov 2011 04:27:00 GMT

Azad Zangana, European economist at Schroders, discusses the importance of a successful eurozone to the UK economy and whether breaking up the single currency is the answer to the ongoing crisis.

Watch the full video on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/11/where-next-for-the-eurozone/

Industry leaders call for joined-up Portuguese promo campaign

admin — Tue, 22 Nov 2011 06:59:00 GMT

The new Portuguese Minister of Tourism, Cecilia Meireles Graca, heard calls for the country to launch a new, well-coordinated communication, pricing and financial support strategy to help rebuild its residential tourism sector when she held a high-level meeting in London with senior leaders from the overseas property industry last week.

The meeting, which included:

Diogo Gaspar Ferreira, the chief executive officer of Vale Do Lobo;
Andre Jordan, the chairman of the Andre Jordan Group;
Jorge Botelho Moniz, manager of Banco Espirito Santo;
Clive Statham, managing director of Anglo Portuguese Mortgages Ltd;
Charles Weston Baker, director of International Residential and Resort Department at Savills PLC;
Christina Hippisley, general manager of the Portuguese Chamber of Commerce;
Simon Perks, vice chairman of the Portuguese Chamber of Commerce;
Filipe Silva, tourism director of the Portuguese National Tourist Office; and
Geoff Hadwick, editorial director of OPP; told the minister, that the residential tourism industry has been undervalued and has not spoken with one strong voice.

“That is why we have decided to set up a proper lobby group,” Ferreira told the meeting, “so we can get 90% to 95% of all the resort developments in Portugal in membership and represent the views of people who have second homes in Portugal.”

Ferreira was adamant that the Portuguese residential sector “needs to concentrate much harder on image.”

Source: OPP.org.uk

Video: Global property outlook 2012

admin — Mon, 14 Nov 2011 06:52:00 GMT

Patrick Summer, Head of Property Equities, Henderson Global Investors shares his outlook for global property markets in 2012.

Watch the full video report on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/11/ask-the-experts-global-property-outlook-2012/

Video: EU leaders reach bailout agreement

admin — Fri, 28 Oct 2011 05:23:00 GMT

A further financial crisis was hopefully averted in Europe as the European Union leaders reached a bailout agreement after a marathon brainstorming session.

Watch the full video report on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/10/debt-crisis-eu-leaders-reach-bailout-agreement/

Leaders agree eurozone debt deal after late-night talks

admin — Thu, 27 Oct 2011 06:15:00 GMT

European leaders have reached a "three-pronged" agreement described as vital to solve the region's huge debt crisis.

They said banks holding Greek debt accepted a 50% loss, the eurozone bailout fund will be boosted and banks will have to raise more capital. Shares on European markets rose sharply on news of the deal.

The agreement is aimed at preventing the crisis spreading to larger eurozone economies like Italy, but the leaders said work still needed to be done.

After marathon talks in Brussels, they agreed a mechanism to boost the eurozone's main bailout fund to about 1tn euros (£880bn; $1.4tn).

Source: BBC

EU crunch time: Your real estate escape routes

Ivan Radford — Wed, 26 Oct 2011 12:07:00 GMT

Photo credit: Eisenrah

The world is watching Brussels today, where EU leaders are meeting to discuss the eurozone debt crisis. Disagreements between country leaders have fuelled fears that the crisis will only continue. But as the 27 European Union leaders vote to finalise financial plans this afternoon, careful buyers can still make a sound investment in Europe. It's crunch time for the EU, so where are your real estate escape routes?

France

As countries such as Greece face an uncertain economic future, central eurozone markets (including the UK) remain a safe haven for many. French property, consistently the second most popular on TheMoveChannel.com, continues to attract investors, particularly in the high-end market, where Sotheby's have seen a jump of 38 per cent in luxury homes sold at auction, reports the Guardian. For UK buyers, taxes now apply to UK pension lump sums, but the country's cautious banks have helped France's economy to stay stable amid wider uncertainty.

Germany

Taking a similar approach to France, Germany's careful economy has made it an established market for house hunters with its high yields and low prices appealing to an increasing number of foreign buyers. While central locations, such as Berlin, are seeing house prices increase, real estate across the country has grown in popularity during the eurozone crisis, becoming one of TheMoveChannel.com's top 10 property destinations earlier this month.

Italy

Italy remains one of the main points of discussion in the EU talks. One of the key countries in the eurozone, other leaders are demanding that the country outline firm plans to reduce its large national deficit. While unconfirmed rumours suggest Prime Minister Silvio Berlusconi will resign at the beginning of next year, Italy's climate is still attracting new residents, although an awareness of seasonality is advised by experts. The property market is slow, but PropertyShowrooms.com suggests that this means lifestyle buyers can pick up houses "at bargain prices if they find someone who really needs to sell or move".

Spain

Spain remains the most popular destination on TheMoveChannel.com, and its low costs and sunny coasts have built up a significant expat community. 800,000 Brits are currently living in Spain, according to the Foreign and Commonwealth Office, and although exchange rates are less favourable than a few years ago and a wealth tax has just been introduced, property prices in more popular areas have reduced by up to 50 per cent, say recent reports. These bargain homes have seen foreigners invest €1.3 billion in Spanish real estate in the second quarter of this year, according to the Bank of Spain - an increase of 37 per cent compared to 2010. Buyers afraid of Greece or Italy can still rely on Spain for a second home.

Portugal

Portugal's economy has been badly hit by EU debt, but real estate activity was less negative in September than in August, say the latest figures. It helps that the market has not been crowded by an oversupply of property. Instead, "it is the demand side of the equation that is weighing down on prices in Portugal", according to the Royal Institution of Chartered Surveyors, a finding supported by the differences between regional markets. The Algarve, for example, is faring significantly better than Lisbon and Porto. Overall confidence In Portuguese real estate is low, but prices are too, kept down by the number of repossessed property banks are now putting up for sale.

Bulgaria

Bulgaria has been a surprisingly popular place for property buyers to browse in recent months. A boom in Balkan tourism has seen construction of holiday homes in Bulgarian resorts rise - there are 5.4 per cent more homes across the country now than in 2001 - and EU citizens, attracted by the non-eurozone market, currently account for 23 per cent of all foreign residents, according to a national survey published by BulgarianProperties.com. The latest data from the National Statistical Institute shows that apartment prices are falling in the country's regional cities, but like Portugal, this rate of decline is slowing, as signs of eventual market stability may be starting to show.

Turkey

Eastern Europe has delighted in Turkey, a country that has seen strong economic growth throughout the EU crisis. Investors have rushed to Istanbul for real estate and foreign buyers have poured over $1.3 billion into the country's property market over the years. Although lending growth has slowed since Turkey's phenomenal first quarter in 2011, a strong tourism industry continues to drive investment. "Mortgages represent just 5 per cent of GDP and there is a growing population that aspires to consume," one fund manager told Interactive Investor. Indeed, there is now a shortage of accommodation in Turkey, with a projected demand for 2.9 million houses by 2015. Turkey has been waiting to join the EU for a very long time, but as the leaders meet today to solve the major debt crisis, the EU's refusal to accept Turkey has only helped its property market thrive.

Where is your real estate escape route?

Avoid the EU debt crisis by browsing our listings of apartments, houses and other overseas property both inside and outside of the eurozone:

http://www.themovechannel.com/property/all/

Poor economic outlook affecting property market in Portugal

Ivan Radford — Mon, 24 Oct 2011 07:50:00 GMT

A weak economy and lack of lending is continuing to depress the residential property market in Portugal, according to the September RICS/Ci housing market survey published today (Monday 24 October).

The National Activity index has turned slightly less negative, but the National Confidence index edged lower last month, according to the report from the Royal Institution of Chartered Surveyors and Confidencial Imobiliário.

Demand rather than supply is the main factor weighing down on prices and activity in the Algarve is not quite as negative compared to Lisbon and Porto, it also shows.

The National Activity index edged up from -33 to -27, while the National Confidence index edged down from -51 to -53. The national price balance fell further from -59 to -65, the lowest reading since May.

Source: Property Wire

Europeans most likely to invest more in real estate, survey shows

admin — Mon, 10 Oct 2011 10:30:00 GMT

Only 43% of European real estate investors report any increase in risk appetite since early 2011, compared to 46% globally, and 64% in Canada where investors show the biggest uplift in risk appetite, new research shows.

According to the Colliers International 2011 Global Investor Sentiment Survey, which takes the pulse of property investors worldwide, measuring their appetite for risk, optimism, key concerns and sense of market cycles, Europeans are more likely to increase their property holdings.

However, stock remains a concern with 49% reporting the supply of ‘for sale’ property remained a key barrier to expansion and over 54% stating they were focused on core property with target IRRs of five to 10%.

With 57% of investors reporting their risk appetite had not increased since the start of the year, it is not surprising those looking to expand are focused on safe bets, says the report.

Source: Property Wire

Portuguese property market 'on the road to recovery'

admin — Mon, 26 Sep 2011 09:26:00 GMT

The Portuguese property market is beginning its recovery, with one expert in the sector noting that the Algarve in particular has seen a rise in buyer activity.

Managing director at Infinito Real Stephen Anderson explained that a busy summer has helped boost sales, although he cautioned that, while there is room for negotiation Over house prices, investors need to be aware that these assets are often already heavily discounted.

He added that one of the key issues is the availability of finance, which means cash buyers are more likely to be able to capitalise on the low market.

"Significantly, once the banks do start to lend again, the Algarve will be best positioned for a quick recovery, which provides a window for investors to make the most of property prices at the lowest they are likely to be," Mr Anderson commented.

Source: PropertyShowrooms.com

Barroso says Europe will avoid return to recession

admin — Mon, 05 Sep 2011 10:43:00 GMT

Europe will not slide back into recession, and the euro remains "strong and resilient", the president of the European Commission has said.

Jose Manuel Barroso added that the Commission and national governments were "doing all it takes" to tackle the debt problems in the eurozone area.

His comments came after rating agency Standard & Poor's (S&P) said last week that the risk of a double dip recession in the eurozone had grown.

Yet S&P said that it should be avoided.

Source: BBC

Portugal confidence creeps back despite price falls

admin — Wed, 31 Aug 2011 06:12:00 GMT

Portugal’s property market is showing signs of slight improvement despite overall figures remaining poor, according the latest Royal Institution of Chartered Surveyors (RICS)/Ci Portuguese Housing Market survey.

The national activity index rose 16 points to -25 and the national confidence index jumped 11 points to -49.

However the national price balance slumped from -48 to -55 despite improving last month.

Falling demand is driving the price drop according to RICS senior economist Josh Miller. “In Portugal, it is the demand side of the equation that is weighing down on prices. Indeed, the double-digit unemployment rate is feeding through to weakness in new buyer enquiries,” he said.

Source: OPP.org.uk

How reform could rock Portugal's housing market

admin — Mon, 15 Aug 2011 11:43:00 GMT

In exchange for an $11 million bailout, Portugal has agreed to make sweeping structural changes, and among them is modernizing the country's housing market.

Good news for landlords, who have long had their hands tied by century-old rent-control agreements and a lengthy eviction process. But for renters, reform could mean a double tragedy. Not only could they be forced from the homes that have been in their families for generations, but many could then also find themselves unable to afford to live anywhere else.

Portugal's rent-control laws, which date back to the beginning of the republic in 1910, mean landlords often find it simply isn't worth their while to rent out their property, leaving abandoned buildings dotting the country.

Source: TIME Magazine

Euro'd be mad not to move to Portugal

admin — Tue, 02 Aug 2011 11:29:00 GMT

Photo credit: Girolame

The Eurozone debt crisis is creating discounts for UK buyers looking to move abroad, and Portugal is a popular choice.

With house prices falling in the wake of mounting European debt, there is a greater chance for UK buyers to pick up a property at a cheaper rate. According to BestAdvice.net, many UK buyers are capitalising on the savings available:

"We are seeing plenty of evidence that UK buyers are moving to snap up bargains in Europe as the effect of the Eurozone debt crisis affects property prices,” said Liz Syms, Director of mortgage company Connect Overseas.

Lots of British buyers are setting their sights on Portugal as a place with lower priced properties.

The Algarve is one of the country’s most popular regions, particularly the tourist resort of Villamoura. With £1.2 million recently invested in renovating the area’s beaches, paths and port, Villamoura’s popularity is set to continue. Portugal property experts Infinito Real think that the area, which covers 2,000 hectares, is a good opportunity for investment.

"As property prices have dropped, Vilamoura has become more accessible to those looking to make a purchase,” the company told Property Showrooms, “and these improvements and increased interest as a holiday hotspot are great news for investors.”

The Royal Institution of Chartered Surveyors has also suggested that the value of the Portuguese housing market may improve even further.

Interested in property in Portugal?

Browse our listings of apartments, houses and other properties for sale in Cyprus here:

http://portugal.themovechannel.com/property/all

More interest in buying overseas properties

admin — Mon, 01 Aug 2011 13:42:00 GMT

Interest in buying property overseas has now tipped the balance versus that of property in the UK, with 67% of respondents saying it is a good time to make a foreign investment and 65% actually considering doing so, a new survey shows.

Countries which generated the most responses were the United States, Turkey and Portugal, the research from Oxfordshire based property investment company, the Worldwide Property Group, shows.

‘It’s hardly surprising that investors are looking beyond the UK for places to invest. Many overseas regions are providing very strong potential returns, the USA being a prime example,’ said Kevin Wilkes, managing director of the Worldwide Property Group.

‘The UK has always been a great place in which to invest in property, and will continue to be so. But with some incredible potential for property investment overseas mixed with increasing ease of purchasing a foreign property, people are finding they have much greater choice, and the UK now has some strong competition,’ he explained.

Source: Property Community

EasyJet announces Southend routes

admin — Wed, 27 Jul 2011 09:43:00 GMT

Low-fare airline easyJet has announced the destinations it will fly to from Southend next year.

From April 2012, the no-frills carrier will offer services from the Essex airport to Amsterdam, Alicante, Barcelona, Belfast, Faro in Portugal, Ibiza, Malaga in southern Spain and Majorca.

With starting fares from £23.99, tickets went on sale today.

Catherine Lynn, easyJet's customer and revenue director, said: "This is an exciting time to be launching our routes from our newest UK base. The airport is in a fantastic location just outside London with a fast rail link into the city."

Source: The Independent

Portuguese real estate market slow as demand remains weak

admin — Tue, 26 Jul 2011 06:16:00 GMT

Weakening demand is continuing to depress the residential property market in Portugal but prices are falling as a slower pace, according to the latest Royal Institution of Chartered Surveyors/Ci Portuguese Housing Market Survey.

Confidence nationally is still low and activity in the housing market is still declining with real estate agents experiencing much sharper price declines than developers, it also shows.

The National Activity and National Confidence indices fell by another one and two points respectively to –49 and –61. However, the report says it is noteworthy that the national price balance, whilst still indicating a weakening picture, suggests prices are falling at a slower pace than previously.

‘With the Portuguese unemployment rate at 12.4%, it is unsurprising that house prices and activity is falling, while confidence remains very depressed. Interestingly, the main factor weighing down on prices is falling demand, rising supply is not an issue,’ said RICS senior economist, Josh Miller.

Source: PropertyWire.com

CBRE real estate report points to growth in Portugal

admin — Tue, 19 Jul 2011 06:31:00 GMT

Returns on investment in commercial property in parts of Portugal have outperformed the sector in other countries in Europe, a new report has shown.

Compiled by CB Richard Ellis (CBRE), the study revealed that yields on property in Lisbon were up by 50 basis points to 7.5 per cent in the second quarter of the year, while revenue from Oporto buildings rose by 25 basis points to nine per cent.

These upward movements for property in Portugal were the largest increases seen in prime rents across Europe over the period and contribute to a continuation of the stability of the market, although gains remain somewhat slowed, the organisation said.

However, Richard Holberton, director of EMEA research at CBRE, added: "In overall terms, the second quarter of 2011 represented a further milestone in the process of gradual value recovery in the European commercial property markets."

Source: PropertyShowrooms.com

Portugal & Bulgaria flights scrapped before they start

Sarah Kendell — Thu, 14 Jul 2011 12:05:00 GMT

Charter airline Tor Air has scrapped its summer programmes to Portugal and Bulgaria just over two weeks before they were due to start.

A spokesman for Tor Air said it made the decision to drop the flights between Gatwick-Faro and Gatwick-Burgas flights because of "poor sales" on the routes.

The weekly flights were due to start in the second half of July and continue throughout August.

The spokesman told Which? Travel that a decision was made to drop the flights at the beginning of last week. He would not say how many customers had been affected, but said all would be given refunds.

However, because the programmes were cancelled more than two weeks before they were due to start, passengers are not entitled to any compensation.

Some passengers have reportedly been left trying to find replacement flights as they had booked hotels and car rentals around the Tor Air service.

Holidays in the Eurozone demonstrating growth

admin — Mon, 11 Jul 2011 11:52:00 GMT

With less than two weeks before the start of the main summer school holidays, ABTA is encouraging UK holidaymakers not to leave it too late to book their summer break after trends show some encouraging areas of growth.

Despite the tough economy, the number of holidays booked for eurozone destinations such as Spain [+11%], Portugal [+8%] and Greece [+2%], have bounced back after two tough years with overall short haul bookings [Europe and North Africa] to date for Summer 2011 seeing an upturn of 9% according to latest figures from leading market research company GfK-Ascent MI. This growth has been fed by hoteliers keeping prices low, tour operators offering all inclusive options and prices in bars and restaurants coming down due to the tough economic situation on the continent. Short haul growth has also helped boost the short-break market from the UK to popular cities such as Paris, Madrid and Rome.

Great deals are to be found in Tunisia and Egypt which are very keen on welcoming UK tourists back after the political upheaval earlier this year. The travel trade is also finding that there are still bargains to be had in Turkey which has seen spectacular growth in recent years.

Cruises are continuing to be popular in 2011, with an expected 5 per cent increase in the number of passengers cruising from the UK this year. In the summer, the Mediterranean provides the most popular cruising itineraries, and while it is still possible to book some late deals for the school summer holidays, availability is limited.

Source: Travel Daily News

Euro drops as Moody’s cuts Portugal debt to junk

admin — Wed, 06 Jul 2011 07:46:00 GMT

The euro fell for the first time in seven days against the dollar after Moody’s Investors Service cut Portugal’s government bond rating to junk and said banks rolling over Greek bonds may incur impairment charges.

The dollar advanced versus most of its major counterparts on speculation China’s efforts to tame inflation and Europe’s sovereign-debt crisis will damp demand for higher-yielding assets. The European Central Bank is forecast by economists to raise interest rates at its meeting this week, and a report may show the U.S. unemployment rate held at 9.1 percent.

“It’s just another reason to sell the euro,” John Doyle, a strategist in Washington at the currency-trading firm Tempus Consulting Inc., said of the Portugal downgrade. “It continues to drill down and reiterate the story that the euro debt crisis is still a huge problem.”

The euro fell 0.8 percent to $1.4429 at 5 p.m. in New York, from $1.4539 yesterday, when it touched $1.4578, the highest level since June 9. The euro dropped 0.4 percent to 116.97 yen, from 117.47. The greenback climbed 0.3 percent to 81.07 yen, from 80.80.

Source: Businessweek.com

Real estate in Portugal cheaper as demand weakens

admin — Tue, 05 Jul 2011 08:40:00 GMT

Portugal remains a great place to snap up bargain property as new figures show that the prices in the country are continuing to fall. The latest figures from the Royal Institution of Chartered Surveyors/Ci Portuguese Housing Market Survey show that poor demand in the country is continuing to push Down house prices.

Falls in prices of property in Portugal

The May figures showed that Portuguese developers reported a steep decline in prices, matching the figures reported by estate agents. The National Confidence and National Activity indices both fell by seven points to -60 and -39 respectively.

Whilst prices are falling across Portugal, there are some significant regional variations. The country’s capital, Lisbon, is seeing significant falling prices whilst Porto is actually seeing a rise in new instructions, despite softer values.

However, the Algarve saw price falls actually slow with falls in new buyer enquiries and agreed sales also decelerating.

Sources: HomesGoFast.com

Portugal property prices continue to soften

admin — Wed, 22 Jun 2011 06:23:00 GMT

Portugal property prices are continuing to fall across the country, as sales levels and consumer confidence plummet, as the country braces itself for a wave of austerity measures, according to the latest RICS/Ci Portuguese Housing Market Survey.

Both estate agents and developers in Portugal reported that prices declined at a much faster rate in May, indicating that vendors, including house builders, are now less resistant to price falls than previously, ‘but at this stage, such a conclusion would be premature’, said the RICS/Ci Portuguese Housing report.

The sharp deterioration in sales and price expectations at the national level was driven mainly by falls in Lisbon.

The national picture masks some interesting regional variation, with price falls also accelerating in Porto, but slowing markedly in the Algarve.

Source: APlaceintheSun.com

Tourists could fuelgreater demand for homes in Portugal

admin — Fri, 17 Jun 2011 07:37:00 GMT

Portugal property agent Infinito Real believes that it could be a ‘bumper summer’ for the Portuguese property market, in spite of the country’s economic crisis, thanks to rising tourism levels.

Infinito Real, managing director, Stephen Anderson, believes that the increased tourism could be the catalyst needed to revive the market, as this is likely to translate into higher demand for rental accommodation.

Anderson expects holiday bookings to be comparable to pre-crisis figures seen in 2007, based on current data from hotel chains and airline operators.

The Algarve, one of the most popular places to buy a holiday home in Portugal, is expected to attract high proportion of the tourists visiting the country this summer.

Source: APlaceintheSun.com

Investors primed for property discounts in Portugal

Sarah Kendell — Tue, 14 Jun 2011 11:21:00 GMT

The election of the new Social Democrat government in Portugal heralds an age of austerity that should see property prices drop across the board, says a leading currency exchange firm.

The newly formed coalition government in the southern European state will seek to implement the severe austerity package demanded by the EU's £70 billion bailout. In addition, conservative-leaning prime minister Pedro Passos Coelho has promised his government will go further with cuts in order to meet deficit reduction targets ahead of time and attract investors back to Portugal - sell-offs of public services like utilities, reductions in unfair dismissal compensation and higher health care levies are planned.

With less money in the household purse, local demand on the property market will no doubt shrink and foreign investors thinking of purchasing real estate in popular holiday areas like the Algarve could be in for a stellar discount, explains Rupert Lee-Browne, CEO of currency broking firm Caxton FX. "If the Socialist Party manage to push through the austerity measures discussed, then property prices will come down across Portugal", he says. "It will become a far more tempting place for overseas investors."

Despite facing an escalating deficit crisis similar to that of Ireland and Greece, the property market in Portugal has in fact played a relatively small part in the country's problems, with less of the rampant remortgaging and high LTV ratio loans that led to Ireland's 'property bubble'. According to Price Waterhouse Coopers' latest Non-Performing Loan barometer, Portugal has had one of the most stable rates of loan default over the 2007-10 period in which most of Europe's property markets crashed - in 2007 at the height of the boom, its NPL rate was around 4%, while last year that in fact decreased to around 3%.

Interested in property in Portugal?
Browse our listings of houses, apartments and other property for sale in Portugal here: http://portugal.themovechannel.com/property/all/

Portugal confirms opening of new 27-hole golf course

admin — Mon, 13 Jun 2011 12:22:00 GMT

Golf tourism is an ever-expanding market, with demand for high-quality courses in desirable locations growing.

So news that the new Onyria Palmares Beach & Golf Resort, in Portugal’s Algarve, will be opened this week is sure to be welcomed by investors with property in the region.

The course, which was designed by American course architect Robert Trent Jones, is made up of 27 holes arranged around three loops of nine above the Bay of Lagos.

It could prompt a number of international investors to buy property in Portugal in order to cash in on the ever-expanding market.

Source: Property Showrooms

A superior interior: Forget the crowded coast. Inland Portugal offers affordable homes in pretty countryside

admin — Thu, 02 Jun 2011 08:17:00 GMT

Portugal might be famous for its beaches, golf courses and an over-abundance of sardines, but head inland and it’s altogether a different outlook.

Here, you’ll find open plains, wooded hills, vineyards and farms. This rural heart of the country, known as the Alentejo, was off the map for decades, thanks to its inaccessibility and lack of hotels and services.

Now, things are changing. The first flights from UK tour operator Sunvil to newly- opened Beja airport started on May 22.

Over the past ten years, there has been a growth in holiday home rentals in the region and the first boutique hotels are opening.

Source: DailyMail.co.uk

Portuguese property market remains depressed

admin — Wed, 01 Jun 2011 07:34:00 GMT

Real estate prices, activity and confidence have all taken a hit as a result of the economic situation in Portugal, the latest report has found.

The April housing market survey from the Royal Institution of Chartered Surveyors (Rics) and Confidencial Imobiliario (CI) shows that the country's beleaguered property market continues to suffer.

Real estate agents are experiencing much sharper price declines than developers but overall the market is very depressed, it also shows.

The national activity index fell a further six points in April to –32, while the national confidence index declined by two points to –53.

Source: PropertyShowrooms.com

European stocks dip after IMP chief arrest

admin — Wed, 18 May 2011 06:42:00 GMT

Europe's main stock markets dipped Monday on fears that the arrest of IMF boss Dominique Strauss-Khan could hit efforts to tame the eurozone debt crisis, as EU finance ministers met to discuss rescues for Portugal and Greece.

While Europe's main indices initially dropped sharply on the news, as the day wore on they recovered somewhat, with London's FTSE 100 index of leading shares finishing the day off 0.04 per cent at 5923.69 points.

In Frankfurt the DAX ended down 0.21 per cent to 7387.54 points, while in Paris the CAC 40 fell 0.72 per cent to 3989.82 points.

"European equities have commenced trading with caution this morning on concerns that the Strauss-Khan affair will likely delay any progress on the European debt crisis," said Spreadex trader Chris Purdy.

Source: Finance.ninemsn.com.au

Madeleine McCann flat to be rented out

admin — Mon, 16 May 2011 11:24:00 GMT

The holiday flat where Madeleine McCann went missing from four years ago is to be rented out for the first time this summer.

The property in Praia da Luz, Portugal, has remained empty since Maddie’s disappearance in May 2007 and the owner’s plans to sell the apartment have so far proved unsuccessful.

According to the Sunday Mirror, the owner of the property Ruth McCann, who is not related to Madeleine’s family, has taken the flat off the market after failing to find a buyer.

The weekend paper quotes Ms McCann as saying: ‘The property has had several viewings. But as soon as women buyers are told it was the apartment that Madeleine was taken from they immediately pull out. A lot of couples have shown an interest. The man usually makes the first approach and a meeting with the estate agent is arranged.

‘But before agents show people round a property in Portugal, they are required to tell them about previous owners. As soon as the female member of the viewing couple learns about the link with the McCann family, she says ‘no’ to the deal. Women are concerned that the flat will continuously remind them of Maddie’s tragic disappearance.'

Source: Metro

Top Ten Off-the-Radar Wine Regions

admin — Thu, 12 May 2011 07:45:00 GMT

France, Spain, Italy, Argentina and California get all the love when it comes to vino. But with the help of imported vines and advancements in technology, new wine regions are popping up the world over. And creating great, high-value vintages for savvy consumers.

Sherman’s Travel has put together a list of the top 10 off-the-beaten-path wine regions you probably haven’t heard of. These locations are perfect for connoisseurs that want to beat the lines in saturated grape hubs like Napa, Tuscany and Bordeaux.

But for more than just wine, some of these regions, like Szekszárd, Hungary and Colonia, Uruguay, offer travelers a charming and affordable way to take in some Old-World scenery.

1. British Columbia: Okanagan Valley

2. Hungary: Villány and Szekszárd

3. India: Nashik

4. Israel: Upper Galiliee and Golan Heights

5. Mexico: Guadalupe Valley

6. New York: Finger Lakes

7. Portugal: Douro Valley

8. Tasmania: The Tamar, Derwent, Huon and Coal River Valleys

9. Texas: Hill Country

10. Uruguay: Colonia

Source: InternationalLiving.com

Portugal’s GDP to Shrink 2% This Year, Next on Added Cuts

admin — Fri, 06 May 2011 07:17:00 GMT

Portugal’s economy will shrink twice as much as forecast this year as the government implements additional austerity measures to qualify for an international aid package of as much as 78 billion euros ($116 billion).

Gross domestic product will decline 2 percent both in 2011 and 2012, Portuguese Finance Minister Fernando Teixeira dos Santos forecast today at a press conference in Lisbon to announce the bailout agreement with the European Union and the International Monetary Fund. That compares with the government’s March projection that GDP would shrink 0.9 percent this year and expand 0.3 percent in 2012.

Portugal resorted to the EU-led bailout after parliament rejected the government’s latest round of spending cuts and tax increases to tackle the budget deficit, prompting early elections. The budget measures, which include freezing public- sector wages and cuts in pensions and jobless benefits, have sparked protests, with public workers planning another one-day strike tomorrow.

“It’s a big hit,” said Gustavo Bagattini, a European economist at RBC Capital Markets in London. “ These measures will have a very large impact on the domestic economy.”

Source: Bloomberg.com

Portugal price falls 'gather momentum'

admin — Thu, 05 May 2011 07:58:00 GMT

Price falls gathered in momentum within the Portuguese property market during March, it has been revealed.

According to the Royal Institution of Chartered Surveyors' (Rics) Housing Market Survey for the country, the declines are being driven by falling demand.

The combination of a fall in prices and demand has contributed to a decline in investor confidence in the country, with both value and transaction expectations remaining negative.

Indeed, the national activity index fell two points, to -26, while the national confidence index declined 22 points further to -51, Rics said.

Source: PropertyShowrooms.com

Portuguese property prices fall as lack of confidence continues

admin — Wed, 27 Apr 2011 10:53:00 GMT

Property prices falls are increasing across all the key areas of Portugal as weakening demand continues to take its toll on the country’s distressed real estate market.

The latest monthly Portuguese Housing Market Survey from the Royal Institute of Chartered Surveyors and Confidencial Imobiliário (Ci) shows that the decline is across Lisbon, Porto and the Algarve.

Price falls gathered momentum in March, driven by falling demand. The report points out that rising supply is not an issue as new vendor instructions have been declining since last December. But the combination of accelerated falls in prices and demand has dealt a sharp blow to confidence, with both price and sales expectations sliding deeper into negative territory.

The national activity index fell 2 points further to -26, but the national confidence index declined 22 points further to -51.

Source: Property Wire

Real estates agents in Portugal positive despite bail out

admin — Tue, 19 Apr 2011 07:16:00 GMT

real estate in Portugal offers a sound investment for those looking for overseas property despite claims that the European Union bail out will have an adverse effect on the industry, according to agents.

The bail out funding will be positive for the country, according to Stephen Anderson, managing director of Portugal based property agent Infinito Real. ‘Portugal has been an impoverished country for generations so the fact that the EU is now taking notice of this is, in many ways, a good thing,’ he said.

But industry experts are pointing out that it will have a knock on effect on the country’s real estate sector, especially in terms of national buyers. Anderson explained that he agrees with Jorge Moniz, of Banco Espirito Santo, who believes that the financial aid will affect the industry.

‘Portugal is a recession hit country, but this does not mean that we loose our tourism appeal, a fact verified by a record number of visitors last year, and this year looks set to be no different. The beaches are still fantastic, and we are seeing more airlines adding new routes to Portugal, which helps to keep tourism unaffected. If anything, there is now more rental potential for property owners as the Portuguese, who may have been looking to buy, are waiting and are therefore looking to rent, thus increasing owners' turnover,’ said Anderson.

Source: PropertyWire

Portugal's housing market remains 'robust'

admin — Thu, 14 Apr 2011 10:39:00 GMT

Despite requesting an economic bailout from the European Union (EU), Portugal's housing market will be unaffected, it has been claimed.

This is according to Jorge Moniz, of Banco Espirito Santo, who believes that the financial aid will have no knock-on effect on the country's real estate sector.

Speaking to Overseas Property Professional, Mr Moniz said that his firm had seen an increase in the number of mortgage applications from UK residents looking to buy property in Portugal.

"It is important to note that Portugal hasn't suffered from a property bubble. On the contrary, over the past ten years up to now, our property prices have been quite stable," he added.

Source: Property Showrooms

Portugal calls for EU financial bail-out

admin — Fri, 08 Apr 2011 03:59:00 GMT

Mr Socrates said the country was "at too much risk that it shouldn't be exposed to".

The government has long resisted asking for aid but last week admitted that it had missed its 2010 budget deficit target.

Portugal follows Greece and the Irish Republic in seeking a bail-out.

"I always said asking for foreign aid would be the final way to go but we have reached the moment," Mr Socrates said.

"Above all, it's in the national interest."

Source: BBC

European Central Bank raises interest rates

admin — Thu, 07 Apr 2011 13:12:00 GMT

The European Central Bank lifted interest rates for the first time in almost three years to quell inflation even as Portugal became the third nation to succumb to the region’s sovereign debt crisis.

ECB policy makers meeting in Frankfurt today raised the benchmark interest rate to 1.25 percent from a record low of 1 percent, as predicted by all 57 economists in a Bloomberg News survey. It also raised the marginal lending rate to 2 percent from 1.75 percent and increased the deposit rate to 0.5 percent from 0.25 percent, maintaining 75 basis-point corridors either side of the benchmark.

While ECB President Jean-Claude Trichet said last month that a move today is “certainly not the start of a series,” investors expect two more increases to 1.75 percent by the end of the year as inflation accelerates and Germany’s economy booms. The risk is that higher borrowing costs may boost the euro and exacerbate the sovereign debt crisis, which last night forced Portugal to follow Greece and Ireland in seeking a European Union bailout.

“The ECB has decided that it will tighten policy for the core countries like Germany that are doing well and leave the non-standard measures support in place for the periphery countries,” said Silvio Peruzzo, an economist at Royal Bank of Scotland Group Plc in London. “The rate increase is appropriate and there will be another one as early as June.”

Source: Bloomberg

Portugal pays higher rate to raise 1bn euros

admin — Thu, 07 Apr 2011 09:53:00 GMT

The government had to tap the financial markets to raise money to repay loans.

But Lisbon is paying yields of 5.1% and 5.9% to borrow money for six and 12 months, against the 3% and 4% it was paying to borrow last month.

Caretaker Prime Minister Jose Socrates is due to make a statement later after his finance minister said the country needs to resort to aid from the EU.

"In this difficult situation, which could have been avoided, I understand that it is necessary to resort to the financing mechanisms available within the European framework," Fernando Teixeira dos Santos said.

His comments were reported in the online edition of business daily Jornal de Negocios and were confirmed by a finance ministry spokeswoman.

Source:BBC

Portugal debt rating cut as EU bailout nears

admin — Tue, 05 Apr 2011 11:41:00 GMT

Portugal’s credit rating was cut by Moody’s Investors Service for the second time in three weeks amid expectations it will be unable to avert a European bailout.

Moody’s downgraded Portugal’s long-term government bond ratings by one level to Baa1 from A3, and said it’s considering another cut. Today’s move put the country at the same level as Ireland, Russia, Mexico and Thailand. Fitch Ratings on April 1 downgraded Portugal three notches to BBB-, the lowest investment grade, and maintained the “rating watch negative.”

“Moody’s rating action was driven primarily by increased political, budgetary and economic uncertainty,” the company said in an e-mailed statement today. It expects the winner of June 5 elections to tap the European Financial Stability Facility with “urgency,” and that Portugal will be able to get support from other euro members before then if necessary.

Investors are increasing bets Portugal will follow Greece and Ireland into seeking a rescue as its borrowing costs surge to record highs. Socialist Prime Minister Jose Socrates resigned last month after Parliament rejected his austerity measures needed to tackle the deficit.

Source: Bloomberg

Portuguese housing crisis leads to boom for agents

admin — Fri, 01 Apr 2011 10:53:00 GMT

With the situation in the Portuguese property market looking dire, home owners are increasingly seeking out agents to sell their properties, hoping for more success than if they were to go it alone.

Head of local real estate agency Era Portugal, Miguel Poisson, said his firm had the most successful year ever last year despite the downturn, as nervous vendors sought out experts to sell their properties in a tough market rather than opting for a private sale.

"Things are going very well for us", he told The Portugal News. "Last year was Era's best ever since it launched in Portugal - we had a 30 percent rise in the number of transactions and 24 percent in revenue."

In the early noughties, property sales in Portugal remained for the most part a private affair - from 2000 to 2009, according to the Portugal News, only one in every three properties sold were through an agent. In 2010 alone, this figure rose to two in every three. "The crisis panorama was a great opportunity", said Poisson. "Owners try to sell directly, without a mediator, but they struggle to do so and end up seeking professional help."

Source: Portugal News Online

Zara Phillips buys Portuguese villa

admin — Thu, 31 Mar 2011 12:50:00 GMT

Princess Anne's soon to be married daughter has purchased a luxury villa in a resort complex just north of Lisbon.

Phillips' new four bedroom holiday home, Villa Cascais, is located within the CampoReal Golf Resort, a 200 acre gated development 20 minutes north of the Portuguese capital.

The villa features its own private pool and terrace, and a riding school and equestrian centre is also offered within the complex, a feature that no doubt appealed to Phillips as a world champion horse-rider.

EU safety net comes just in time for Lisbon

admin — Mon, 28 Mar 2011 11:49:00 GMT

The EU's latest agreement on safety net measures to avoid a collapse of the currency bloc was overshadowed this weekend by the continuing economic woes of latest debt crisis victim Portugal.

The country, whose prime minister resigned last week after the failure of his budget to pass parliament, appears to be almost guaranteed to ask the EU for a multi billion euro bailout package similar to those of Ireland and Greece. This should occur within weeks, as it can no longer afford to pay the huge yield rates on its bonds.

After ratings agencies Fitch and Standard & Poor's cut Portugal's debt ratings last week, bond markets pushed up Lisbon's rate of repayment to over eight percent, which was a similar level at which Ireland relented and asked for a bailout.

Even so, German Chancellor Angela Merkel was optimistic that the new measures agreed at the weekend's Brussels summit should be enough to support any further ailing nations. "Very far-reaching and ground breaking decisions were made at this summit", she said. "We have ensured there will be durable support for the euro."

Portugal property prices continue to fall

admin — Mon, 28 Mar 2011 10:58:00 GMT

Consumer confidence appears to be worsening in Portugal's property market, with the Royal Institute of Chartered Surveyors reporting that national real estate prices have fallen every month since December.

Since the resignation of Prime Minister Jose Socrates last week after his austerity budget failed to pass through parliament, it seems the nation is in economic freefal, and property prices are reflecting this, said an RICS spokesman.

"These concerns are being amplified by higher unemployment and political uncertainty", he said. "On the other hand, some expect a boost in tourism due to the political changes taking place in competitor countries in the Maghreb."

Socrates resignation may trigger Portugal bailout

admin — Thu, 24 Mar 2011 12:25:00 GMT

Portuguese Prime Minister Jose Socrates tendered his resignation after plans to cut the budget were rejected by parliament, pushing the country closer to an international bailout.

President Anibal Cavaco Silva said late yesterday he will meet the main parties on March 25 and the government will retain its powers until he accepts Socrates’s resignation. The vote came hours before European Union leaders meet in Brussels to sign off on measures aimed at drawing a line under the region’s sovereign debt crisis.

The risk is that investors dump Portuguese bonds in the face of a political stalemate that delays the negotiation of a rescue package, which Royal Bank of Scotland Group Plc estimates may be worth around 80 billion euros ($113 billion). The cost of insuring Portuguese debt against default is near a record high.

“It’s pretty inevitable” that Portugal will need a rescue, said Jacques Cailloux, a London-based economist at Royal Bank of Scotland Group Plc. “The market will deteriorate in the absence of other measures going through. There is obviously the risk of further downgrades, which will become anticipated by the markets and be a self-fulfilling prophecy.”

Source: Bloomberg

Economists now view Portugal bailout as 'inevitable'

admin — Wed, 23 Mar 2011 11:38:00 GMT

Portugal has been resisting asking for a rescue but economists and market experts believe its battle could be ending – even as the country raises taxes and embarks on the biggest spending cuts for three decades.

Emilie Gay, economist at Capital Economics, said: "With bond yields stubbornly high and heavy debt redemptions due over the next few months, it appears all but inevitable that Portugal will be forced to follow Greece and Ireland in accepting financial support from the EU and IMF."

She said it now seemed a "matter of when rather than if" Portugal would accept a bailout as the yields – interest rates – on 10-year bonds have hovered around 7% for more than a month; Greece and Ireland asked for help within four weeks of being pushed to such levels.

Portugal has just €4bn (£3.4bn) in cash reserves and €9bn of debt to mature in April and June, she said. Portugal's benchmark 10-year bond yield rose to 7.69% today – not quite the record levels of 7.81% – pushing the premium investors demand to hold Portuguese bonds over German bonds, regarded as the safest in the eurozone, to 4.43 percentage points.

Source: The Guardian

Portugal targets Brits with new tourist campaign

admin — Mon, 21 Mar 2011 13:22:00 GMT

The songs of Andrew Lloyd Webber have moved audiences to tears and set box office tills ringing in London's West End for more than 30 years, but can they help to shore up the Portuguese economy?

As the country struggles this weekend to play down new fears about an impending bailout by the International Monetary Fund, the national tourist agency has announced a plan to draw a stream of British tourists into Portuguese resorts this summer by booking a succession of popular British entertainment shows and acts.

At the top of the bill are The Phantom of the Opera, Evita and Jesus Christ Superstar. The British band Morcheeba is already booked, as is jazz singer Norma Winstone. There are also plans to bring in Lamb, the electronic trip-hop musicians from Manchester.

The entertainment scheme, called Allgarve Nations, aims to celebrate the culture of one of the favourite visiting nations each year in turn. "For this first edition we have chosen the United Kingdom, which is our main tourism market, with a programme that includes British artists as well as national ones," said Augusto Miranda, the co-ordinator of the campaign.

Source: The Guardian

Universal healthcare to ease costs for EU travellers

Sarah Kendell — Fri, 18 Mar 2011 10:41:00 GMT

For second home owners regularly travelling to their property in Europe, obtaining insurance to ensure you're covered for any accidents that could occur abroad is at best an annoyance, at worst a hefty extra cost. Luckily, if you're a citizen of the EU or UK travelling to another country within the Eurozone, all that is about to change.

By 2013, all EU citizens will be able to claim back for medical treatments they receive in other European countries, with or without travel insurance. The new Cross-Border Healthcare Directive, ratified in Brussels last month by all Eurozone states, will benefit both short-term travellers encountering those pesky ski accidents, and retirees who divide their time between, say, the UK and a second home in the Mediterranean.

For the latter category, healthcare has been a particular problem previously. As well as not qualifying for free healthcare in the EU, British citizens who spend more than 184 days a year abroad are also discounted from receiving NHS treatments. The new law should simplify the process for this expat category, ensuring they can receive medical care whether they spend the majority of time in France, Spain, the UK or anywhere else in Europe.

Despite the EU executive's estimation that cross-border healthcare will only take up a mere 1% of total health spending, the new laws (which must be implemented by all states within 30 months) have met with some resistance in the UK. "The rules will turn the UK's NHS into a bureacratic nightmare", said UKIP leader Nigel Farage. There are also concerns that some countries may be late in doing their part to implement the laws, as Spain, particularly, has been slow to implement many health and insurance-related resolutions from the EU in recent years.

New Algarve flights promise a swinging time

Sarah Kendell — Wed, 16 Mar 2011 10:56:00 GMT

The Portuguese region of the Algarve has proved a long-standing favourite with British sunseekers and golf enthusiasts, and since the onset of low-cost flights to Faro airport, even more UK tourists have flocked to this exclusive slice of Mediterranean paradise. This summer, travellers in the north of the country will have easy, inexpensive access to the Algarve for the first time, with low-cost carrier Jet2 launching services from seven northern UK destinations.

The airline, which flies regularly from its home airport in Leeds to Faro, will extend its routes this summer to include direct flights from Blackpool, East Midlands, Edinburgh, Glasgow, Manchester and Newcastle. With flights starting from as low as €39, this should bring a huge influx of new tourists to the area. As a special opening promotion, Jet2 is also offering no check-in fees for golf clubs on any March, April or May flights booked this month.

The new destinations represent an extension of 150,000 seats compared to Jet2's summer services in the 2010 season, where they sold 200,000 seats. The airline has also added an extra 5,000 seats to keep up with demand increases as customers originally travelling to Tunisia and Egypt change their holiday destinations.

Chief Executive Philip Meeson said he was confident the new services would prove fruitful for the airline. "We are delighted to continue our expansion of this important destination", he said. "Faro has proved to be very popular not only with British holidaymakers seeking sunshine and fantastic golf courses, but also for a number of our customers living in and around the Algarve who want to be able to return to the UK."

The increase in flights should also prove fruitful for the property industry, with more potential buyers able to explore the area and see it as a solid tourist destination and a secure investment. "As well as increasing accessibility, this is a positive step for tourism and investors", said Stephen Anderson of Portugal-based property agent Infinito Real. "More competition will drive prices down and ultimately more people to the area. It also demonstrates confidence in the Algarve as a growing tourist destination."

Interested in property in Portugal?
Browse our listings of apartments, houses and other property for sale in Portugal here: http://portugal.themovechannel.com/property/all/

Portugal tightens budget further to avoid bailout

admin — Mon, 14 Mar 2011 11:00:00 GMT

Finance Minister Fernando Teixeira dos Santos has said Portugal will tighten its austerity measures to ensure it meets its deficit reduction targets, hours ahead of a summit on the eurozone debt crisis.

"We are going to reinforce the measures to reduce planned expenditures in 2011 in order to open up a supplementary margin which will guarantee in an even stronger manner attaining the target of a public sector deficit of 4.6 per cent" of gross domestic product, he said on Friday.

Portugal has come under increased speculation in recent days that it will be forced to follow Greece and Ireland in being forced to accept an international bailout. Investors have driven Lisbon's borrowing costs to levels widely considered unsustainable in the long-term, with yields on its 10-year bonds at 7.403 per cent on Wednesday.

Dos Santos said the additional measures were necessary due to the risks tied to the volatility of debt markets, where Portugal now has to pay record levels of interest to investors since it adopted the euro.

Source: ninemsn

Wall Street recovery leads to luxury property boom

Sarah Kendell — Tue, 08 Mar 2011 10:51:00 GMT

Property markets in the US and Europe may be recovering at a generally slow pace, but there's one category that's rebounding faster than the rest - luxury property. Across the traditional high-end destinations in the international property market, agents have reported an increase in enquiries and sales for homes above the million mark, as stock market rebounds make the super-rich more secure in their income than they have been in several years.

With Wall Street stock prices now almost double their 2009 lows, property sales are picking up rapidly in the wealthy investor's first port of call - New York. A total of 70 Manhattan listings above $4 million went into contract last month, the highest number since before the crash in January 2007.

CNN also reports a nationwide increase in luxury property sales across the US. According to real estate data provider DataQuick Information Systems, sales of million-Dollar homes rose in all 20 major metropolitan areas across the country last year, with the highest increase in San Jose, California, where sales rose 27.4%. Outside of this bracket, however, sales fell by 2.8%.

Across the pond, British estate agents Knight Frank have also reported an increase in high-end enquiries within their overseas property sector. Liam Bailey, head of residential research at the firm, indentified the Swiss ski resort of St Moritz, the Cap Ferrat area in the French Riviera and the Portuguese golfing haven of the Algarve as hot spots for luxury property investment in 2011. "Wealthy residents from a growing number of countries are investing more of their portfolios in luxury residential property across a wide variety of locations", said Bailey.

Portugal, Greece debt ratings could worsen

admin — Thu, 03 Mar 2011 13:16:00 GMT

Both Portugal and Greece could see their debts further downgraded in the next two months, ratings agency Standard & Poor's warned on Wednesday, depending on what happens at a crucial European leaders' summit later this month.

The agency said in a report it is maintaining its A- rating on Portugal and its BB+ rating on Greece but has kept both countries on so-called "CreditWatch with negative implications."

Heavily indebted Greece accepted an EU-IMF bailout last year, as did Ireland, and ailing Portugal is widely expected to follow suit even though it managed to raise another 1 billion ($1.38 billion) at a bond sale Wednesday. S&P said it could lower the ratings on both Portugal and Greece within the next two months after analysing an expected new European bailout mechanism.

Source: Ninemsn

Spain leading Portugal in race to economic recovery

admin — Mon, 28 Feb 2011 12:08:00 GMT

Spanish Prime Minister Jose Luis Rodriguez Zapatero is beating his Portuguese counterpart Jose Socrates as they battle to convince investors they can stem the debt crisis and restore economic growth.

The extra yield investors demand to own Portuguese 10-year bonds rather than Spanish securities has climbed this year, approaching levels reached just prior to Ireland’s November bailout. It cost a record 215 basis points more this week to insure against Portugal defaulting than its Iberian neighbor.

Zapatero adopted austerity earlier than Socrates. In a U- turn, he embraced public-wage cuts six months before Socrates did, raised the retirement age, made it cheaper to fire workers and forced lenders to hold more capital. Portugal, whose central government deficit widened for the first 10 months of last year, denies it needs aid as borrowing costs near a euro-era record.

“It seems that the adjustments the Spanish government has made and the tighter rules they are applying to the banks are having a convincing effect on investors,” said Marius Daheim, a senior fixed-income strategist at Bayerische Landesbank in Munich. “Spain is getting the benefit of the doubt and is increasingly being perceived as a turnaround story, while Portugal is seen as a target for the rescue fund.”

The yield spread between Spanish 10-year bonds and their German counterparts has narrowed 26 basis points since Dec. 31 to 223 basis points today, while Portugal pays 73 basis points more relative to bunds than at the end of 2010. Bond trading signals that while Portugal is struggling to convince investors it won’t need to turn to the 440 billion-euro ($606 billion) European Financial Stability Facility rescue fund, Spain is seen at less risk of collapse.

Spanish bonds are “certainly getting better” as a potential investment, Andrew Bosomworth, a money manager at Pacific Investment Management Co., said in an interview on Bloomberg Television’s “On the Move” with Francine Lacqua on Feb. 21. “Real economic progress and healing is starting to take place,” he said. Pimco manages the world’s largest bond fund.

Zapatero announced additional measures today aimed at tackling the 20 percent unemployment rate, telling Parliament the government will step up vocational training in schools. The prime minister, who has pledged to change rules on wage- bargaining by the end of next month, also said the nation has to improve its competitiveness.

Source: Kyero

Algarve property prices looking weak

admin — Thu, 24 Feb 2011 12:04:00 GMT

The attractive coastal region of the Algarve is establishing itself as Portugal's weakest real estate market, latest figures have revealed.

The January Royal Institute of Chartered Surveyors and Confidencial Imobili?o Portuguese Housing Market survey shows that due to falling demand residential property prices in the country fell even further in January.

The national Activity and Confidence indices both remain negative, despite some improvements, they were at -14 and -31 respectively compared with -32 and -35 the previous month. A reading below zero marks a deterioration, while a positive number signifies an improvement. The indices range from -100 to +100.

Outlook for prices remains far more negative than that for sales, the survey shows. However, there is a significant disparity between regions.

The region suffering the worst conditions in the whole of Portugal is the Algarve. Prices and price sentiment has been hit harder in the Algarve than elsewhere due to falling interest from potential new buyers and sharply rising new vendor instructions.

"The Algarve market is heavily oriented towards second homes and therefore it tends to be prone to sharper seasonal fluctuations than the Lisbon and Porto markets," said CI spokesman, Ricardo Guimaraes.

Source: Press Association

Luxury homes on the rise once more

admin — Wed, 23 Feb 2011 12:58:00 GMT

The move away from obvious displays of wealth to pared-down simplicity in home-buying patterns – so-called wealth whispering – appears to have been short-lived. Real estate players worldwide say the super rich have regained their appetite for trophy properties, with increasingly more buyers returning to opulent real estate hot spots.

British-based property group Knight Frank says it has over recent months seen a marked uptick in demand from high net worth investors looking to bag a trophy holiday home or investment property while prices are still below 2007/2008 peaks.

“Wealthy residents from a growing number of countries are investing more of their investment portfolios in luxury residential property across a widening range of locations,” says Liam Bailey, head of residential research at Knight Frank.

Bailey singles out St Moritz (Switzerland), Cap Ferrat (France), Paris, London, Monaco and Portugal’s Algarve as favoured playgrounds for those seeking top end lifestyle buys. Interestingly, Cape Town is currently ranked alongside Abu Dhabi, Hong Kong, Sydney and London as the world’s most popular destinations for big ticket buyers motivated primarily by investment returns.

Source: Fin24

German election spells further insecurity for EU

admin — Wed, 23 Feb 2011 12:52:00 GMT

With the world’s attention understandably elsewhere, the Eurozone spent the last week maintaining the status quo. North Africa’s chaos rattled European stock markets, and the ongoing economic recovery lead to threats of looming inflation, but the calm before the upcoming March summits held.

Portugal scraped by, avoiding bail-out for another week, while prime minister Jose Socrates announced a 58.6% reduction in the state deficit from last year -- proof, he claimed, that his government’s austerity measures were working. Not enough proof, said most observers, who think that EU intervention is the only thing that will restore market confidence in the country, which has been fighting off stratospheric, unsustainable borrowing costs in the last few weeks.

Greek Prime Minister George Papandreou, visiting Angela Merkel in Berlin this week as part of a pre-summit tour of EU leaders, urged Merkel to consider more flexibility in dealing with the Eurozone’s ongoing debt crisis. Flexibility meaning, in this case, lowering the 5% interest rate on Greece’s bail-out funds, allowing debt buybacks on the table during the March summits and regulatory freedom for the EU’s rescue fund agency, the European Financial Stability Facility.

But Papandreou’s timing was poor. He arrived in Berlin the day after Merkel, driven by domestic politics in much of her actions over the last year, saw her party decimated in local elections on Sunday. Her Christian Democrats received a mere 21% of the vote in Hamburg, down from 42% in 2008.

Source: Minyanville

High-end investors flock to the Algarve

admin — Fri, 18 Feb 2011 13:29:00 GMT

You don’t need to love golf to hanker for a home in The Algarve. Under three hours’ flying time from Britain, it offers an envious lifestyle, with a wide range of year-round activities and attractions. But it is the region’s world-class golf facilities that act as a major attraction for holiday homebuyers.

‘Although only around 40 per cent of homebuyers play golf, it’s still considered essential to be in an attractive, well-maintained golfing area, which will yield good rental prices,’ says Charles Weston Baker, of Savills International.

Inquiries for homes in The Algarve, which has more than six hours of sunshine a day in December and January, and temperatures often above 15c, are improving significantly. Figures supplied by primelocation.com reveal a 55 per cent year-on-year increase in the volume of website searches for homes in Portugal.

Santander Totta — which provides many mortgages to people buying properties in the country — has also seen increased activity, according to Simon Perks, the bank’s general manager. ‘In the past three to four months we have seen more interest from those looking to buy at the top end of the market.’

Source: The Daily Mail

European commercial property set to grow

admin — Fri, 18 Feb 2011 13:19:00 GMT

As occupier demand for commercial property gained momentum across most European markets during the last quarter of 2010, rents are expected to improve in the coming months, says the latest RICS Global Commercial Property Survey, published today 17 February, 2011. Comments from respondents indicate that the recovery of the occupier market is broadening in the region, with a positive effect on rental expectations and progressively reducing the problem of property oversupply in most markets.

Russia and Ukraine experienced the strongest occupier market growth, followed closely by Germany, influenced by a strong economic climate, falling unemployment and rising consumer confidence. The situation is also improving in Central & Eastern European markets such as Czech Republic and Poland.

However, market conditions appear worse in European “peripheral economies” such as Greece, Spain, Ireland and Portugal, with tenant demand and rental expectations falling sharply in Q4 2010, as fiscal austerity stifles growth, sovereign debt concerns and high unemployment continue to plague these countries. On the other hand, only 13 countries, out of 24 covered by the survey, recorded a rise in investment activity compared to 17 in Q3, having inevitably impacted capital value expectations.

Investment markets in Poland and Turkey recorded the best results in the region. Across Europe the retail and office sectors improved the most. In the other world regions rental expectations for Q1 2011 are most positive in Latin (as well as Central) America and Asia.

Source: Property Magazine International

Eurozone increases bailout fund for struggling nations

admin — Tue, 15 Feb 2011 10:44:00 GMT

Eurozone finance ministers have agreed to set up a permanent bail-out fund for the region of 500bn euros (£420bn; $673.2bn).

The fund, which will be called the European Stability Mechanism (ESM) will replace the current 440bn euro European Financial Stability Facility (EFSF).

The EFSF was set up last year to provide support to eurozone countries. The agreement comes a month ahead of expectations, and is one of many decisions to be made on the fund.

The new ESM will be part of a "comprehensive package" of measures European leaders are hoping to agree in late March to resolve the eurozone debt crisis that has overshadowed the region for the past year.

Source: BBC News

Bankers remain insecure over Euro market

admin — Fri, 04 Feb 2011 11:15:00 GMT

A hoped-for turnaround in European real estate is unlikely to materialise this year, with the markets' optimism hammered by the weak economic recovery and persistently poor debt conditions, a survey said on Friday.

PricewaterhouseCoopers (PwC) and Urban Land Institute (ULI), which interviewed 600 industry players including investors, developers and bankers, said respondents' hopes of a quick rebound in last year's survey has waned this year.

"In January 2010, the sunny uplands did not seem too far away, but they do now. Optimism dissipated as every month came and went. It was battered by events," ULI and PWC quoted one interviewee as saying.

The property industry also faces the threat of further shocks from stressed countries such as Italy, Portugal, and Spain, the report said. The sharpest wake-up call in 2011 will be felt in the secondary, or "non-prime", property market, where many believe the real hangover from the bursting of the property bubble in 2008 has not yet set in, it added.

Source: Reuters

Rent control chokes Portuguese property market

admin — Thu, 03 Feb 2011 11:46:00 GMT

Isabel Palma has been trying to sell a seven-story building in Lisbon’s business district for six years. It doesn’t help that the property isn’t generating enough income to pay for maintenance and she can’t raise rents.

The six remaining tenants, including law firms and a hostel, have had their rents frozen for years or simply don’t pay anymore because they don’t fear eviction, according to the landlady, whose family has owned the 1,610 square-meter (17,330 square-foot) property since 1909. She gets a total of 1,100 euros ($1,490) a month in rent.

“I’ve spent six years in court and thousands of euros on lawyers trying to terminate leases with tenants who pay little or nothing,” Palma, 78, said in an interview. “No one wants to buy into a problem like that.”

Century-old controls on rents and evictions are stifling investment in Portuguese real estate and leaving the country with crumbling city centers as rental income fails to keep pace with maintenance costs, according to landlords and property industry groups.

The government has pledged to introduce measures in March to streamline rules on rental properties as it seeks to jumpstart an economy that’s had one of Europe’s weakest growth rates over the last decade. While legislation in 1981 lifted rent controls on new contracts and a 1990 law allowed landlords to set expiry dates on leases, more than half of Portugal’s rentals are subject to the older restrictions.

That means most owners are still coping with contracts that never expire and rates that are frozen or limited to inflation adjustments, said Miguel Marques dos Santos, an attorney specializing in real estate at the Lisbon office of Garrigues. Even death isn’t always enough to break a lease because tenants can pass on a contract to their children, spouses or parents.

Source: Bloomberg

Mortgage expert predicts Madeira property growth

admin — Wed, 02 Feb 2011 11:24:00 GMT

A leading Portuguese mortgage-lending bank has said that Madeira is set to see an increase in demand for holiday homes this year.

The sector is well positioned to bounce back due to the tight supply of holiday homes, according to Jorge Botelho Moniz of Banco Espirito Santo.

Mr Moniz said: "Madeira is still relatively unknown as a holiday home destination. "There are just a few developments targeting the foreign market, but the existing ones offer high quality units in exclusive breathtaking locations and a variety of services included."

Stating that the Portuguese island is a "well-kept secret" currently, Mr Moniz said he expects to see a shift in the situation in the near future as "existing developments achieve maturity in sales and new ones come into the market".

Source: Press Association

Portugal housing market remains slow

admin — Tue, 01 Feb 2011 11:32:00 GMT

Property sales are continuing to fall in Portugal although estate agents and developers are finding a less severe pricing environment in the country’s real estate market, according to a report published on Friday.

Confidence though in the market is subdued, the December report from the Royal Institute of Chartered Surveyors shows. The Lisbon Metropolitan Area (LMA) and Oporto Metropolitan Area (OMA) encountered a less severe pricing environment compared to November, but the Algarve did not.

The relative improvement in the pricing environment during December can mainly be attributed to the fall in new instructions to sell property that was concentrated in the LMA and OMA regions. New buyer enquiries continued to fall sharply, but less so than in November and this was evident across all regions covered in the RICS/Ci Housing Market survey.

And the transactions picture continued to deteriorate, with more respondents reporting falling rather rising than sales compared to November.

Source: Propertycommunity.com

PIGS versus BRICs - which property hotspots are best?

Sarah Kendell — Fri, 28 Jan 2011 10:50:00 GMT

Individual European property markets vary dramatically, with country annual growth ranging from minus 14.8% in Ireland and minus 3.7% in Spain, to stronger European countries like Poland at 8.1% growth and Turkey at 2%.

Emerging markets might be considered higher reward than European markets. However it is important to note that they can overheat and also be higher risk, Dubai is a classic example of this.

Europe, the PIGS and BRICs

The troubles encountered in the Eurozone, including financial bail outs, the banking review, the establishment of a permanent, Eurozone financial rescue mechanism, all played a role in shaping the developed nations' property market in 2010.

Add to the mix, property buyers wanting to raise finance, as well as watching exchange rates. For example, European banks' exposure to the debt of Spain is €257bn, (according to FT/CEBS analysis) that is a sizeable sum. This will influence access to funding for overseas property purchases.

The Euro area is forecast to grow at 1.3% 2011, vs 6.8% and 6.4% for emerging economies. Economic growth bodes well for property markets, since the wealth generated creates property demand and acts as a driver of the property market.

On the face of it, the emerging economies look a better bet, however they will need resources to grow, both money and raw materials (witness the spate of lead thefts to supply china with base metal requirements). Some emerging markets have not yet got a proven, "foreign property buyer" track record.

Sustainability of the domestic, property markets will also be a key question to bear in mind, as well as how foreign property buyers are treated by regulation.

What does this mean for Overseas property buyers in 2011/12?

A country need not be showing booming property growth right now, for it to be a good future, investment opportunity, but it must have the potential to recover in the medium term. This way property can be bought at keen prices and has the scope to grow as an investment.

Choosing the bank a buyer deals with, could be as important as the country chosen to buy in, for 2011 and beyond. Banks with low exposure to weaker economies and bad debt may be worth seeking out.

Portugal to raise 1.25bn euros in bond market

Sarah Kendell — Wed, 12 Jan 2011 11:51:00 GMT

The UK's 6,560 final-salary schemes in the private sector moved from a deficit of £1bn to a surplus of £22bn in December.

The PPF said this was due to a 3.4% increase in the value of scheme assets during the month. These had increased at a faster pace than the cost of paying for pensions, which also rose in December but by 1%.

"During the month of December there was a 3.4% increase in assets mainly due to rising UK and global equities," the PPF said. "However, liabilities also increased by 1% due to the combination of falling index-linked gilts and the time value of liabilities [schemes becoming more mature]."

Euro hits three-month low

Sarah Kendell — Mon, 10 Jan 2011 16:10:00 GMT

The euro has traded near a three-month low on speculation European nations will struggle to raise funds, diminishing the allure of their assets.

Europe´s currency declined versus 13 of its 16 major counterparts before Portugal, Spain and Italy sell government debt this week.

"It looks as though the market is pricing in some further deterioration in the sovereign debt story," said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. "Obviously the Portugal auction on Wednesday will be closely watched. I see euro weakness continuing."

The euro was at $1.2904 at 8:30a.m. in Tokyo from $1.2907 in New York on Jan. 7, after touching $1.2867, the lowest since Sept. 14. The single currency traded at 107.26 yen from 107.32 yen last week, when it reached 106.95 yen, the weakest since Sept. 14.

Weak outlook for Portugal's market

Catherine Deshayes — Wed, 22 Dec 2010 19:11:00 GMT

The real estate market outlook in Portugal is poor as house prices fall at a faster pace, driven by further weakness in the Lisbon and the Algarve, a new report indicates...

Buyer interest continues to fall, while new instructions to sell property increases to such an extend that confidence in the short term sales and price outlook remains weak across all regions, according to the November Portuguese Housing Market Survey from the Royal Institution of Chartered Surveyors and Confidencial Imobiliario.

It shows an increasing number of respondents reporting falling rather than rising prices over the last three months. This was driven by further weakness in the Lisbon Metropolitan Area and the Algarve while sentiment remained unchanged in the Oporto Metropolitan Area.

It says that transaction activity continued to fall at roughly the same pace as last month and weaker sentiment over past prices continues to be fuelled by a combination of falling demand and rising supply.

Indeed, the survey results show that new enquiries from potential buyers fell at a faster pace than in October, while new vendor instructions to agents continued to increase, though at a slightly weaker pace than last month.

Survey respondents turned increasingly pessimistic over the short term outlook for prices and sales and the data shows this was mainly driven by agents. In terms of the short term price outlook, survey respondents remain highly downbeat across all three regions covered in the survey. However, one encouraging sign is that respondents in the Algarve were slightly less pessimistic than last month.

‘The November RICS/Ci data shows that a combination of rising instructions to sell property and falling buyer enquiries continues to weigh down on house prices. Given this supply/demand dynamic, survey respondents expect prices to fall further over the near term,' said RICS Senior Economist, Josh Miller.

‘The weakness in housing market sentiment reflects wider economic fundamentals; the labour market is in particularly bad shape with unemployment currently at 11%, compared to 10.2% this time last year,' he added.

According to CI spokesman Ricardo Guimaraes respondents expressed concern over the state of the housing market in light of a possible financial bail out by the International Monetary Fund. ‘However, respondents are interpreting the possibility of a greater role played by the European Union in the current crisis, as has been recently indicated, as a more favourable outcome to the housing market than IMF involvement because of less stringent conditionality that is perceived to be attached,' he explained.

Source: www.propertywire.com

Algarve, Madeira bucking downward trend

Catherine Deshayes — Sun, 19 Dec 2010 15:47:00 GMT

Banks' valuations of residential properties in Madeira and Algarve increased in October, despite a general downturn in Portuguese property prices...

According to a survey by the National Statistics Institute (INE) into banks' property valuations, nearly all regions of Portugal recorded property price falls in October, with the exception of properties in Madeira and Algarve and Madeira, where prices appreciated by an average 0.8 percent and 0.4 percent, respectively, compared to the preceding month.

The Algarve and Madeira property markets have long appealed to Brits buying property in Portugal. Both Portuguese regions are easily accessible from the UK and have large British expat communities.

Overall, average banks' valuations of homes in Portugal fell in October by 0.6 per cent, compared to September, and by 1.3 per cent compared to the corresponding month last year, illustrating that people wanting to buy a property in Portugal can generally now buy homes for less.

According to a survey by the National Statistics Institute (INE), the average residential property in Portugal is priced at €1,133 (£961) per square metre.  The greatest Portugal property price falls have been recorded in the apartments sector.

Source: www.aplaceinthesun.com

New Portuguese city to be built

Catherine Deshayes — Tue, 30 Nov 2010 19:53:00 GMT

Plans to build a new city in the north of Portugal moved a step closer to becoming reality after major UK-based Quintain property firm yesterday agreed to provide property advice over the next two years...

Urban technology firm, Living PlanIT, wants to develop a 1,700ha city at Paredes in the north of Portugal at a build cost of around £340 million.

The construction of the large-scale mixed use development, which will feature a number of new build homes, will see a new approach to design, construction, operation and maintenance, enabling cheaper, faster and higher quality developments, according to the developer behind the scheme.

Adrian Wyatt, chief executive of Quintain, said: "This agreement capitalises on Quintain's core skills and expertise in its natural marketplace of urban development... it delivers the real estate capabilities necessary to translate the model into real cities.

Living PlanIT co-founder Steve Lewis added: "Cities occupy two per cent of the Earth's land mass but consume 75 per cent of its resources. World urbanisation and population growth [increasing from 50 per cent of mankind currently living in cities to 69 per cent by 2050 according to the United Nations World Urbanization Prospects 2007 Revision] demands an accelerating urgency to change the way that buildings, infrastructure and cities are built and operated."

While most Brits who buy property in Portugal traditionally opt for homes in Algarve or Silver Coast, Northern Portugal is growing in popularity, particularly homes in Porto.

Source: www.aplaceinthesun.com

Portugal 'could face euro exit'

Catherine Deshayes — Fri, 19 Nov 2010 09:56:00 GMT

Individuals interested in looking for property in Portugal may be interested in the latest comments from one government minister from the country...  

Speaking in an interview with the Portuguese weekly Expresso, foreign affairs minister Luis Amado said Portugal faces "a scenario of exit from the euro zone" if it fails to tackle its economic challenges.  

He explained that there needs to be a political-wide coalition to confront the economic challenges and win the support of the market. 

"There has to be an effort by all political groups, by the institutions, to understand the gravity of the situation we're facing," Mr Amado said.  The country has seen a sharp fall in investor confidence over the past few weeks as concerns over fellow eurozone struggler Ireland intensified - pushing Portugal's risk premiums to their highest levels since it adopted the euro.  Mr Amado added: "The country needs a grand coalition that allows it to get through the situation. I believe the (political) parties understand that the alternative to the situation we confront is eventually leaving the euro."

Source: www.propertyshowrooms.com

Portugal receives top international property award

Steph Engall — Mon, 04 Oct 2010 12:34:00 GMT

For the second year running, Dunas Douradas Beach Club is awarded "Best Development" at the European Property Awards...

More than 1 billion NOK (Norwegian Crowns, approx £100 million) has been invested in the Algarve at this Norwegian owned development, and the results have shown strong rates, high occupancy and five-star standards from the beginning - all countering current downward trends in Algarve Tourism.

"With such strong competition, especially from France and Italy this year, it was a great honour to have been singled out as the winner in the overall best development category" said Managing Director, Evy Ougendal.

Dunas Douradas Beach Club were also highly commended in another category for Best Interior Design this year and won last year's competition in the categories of Best Architectural Design and Best Resort Apartments.

As the winner in the ‘Best Development' Category this year however, the resort will go on to compete with the winners from across the seven continents for the World's Best Development. Competing on a global scale will certainly bring on more competition, especially from Asia where the property development area has experienced a boom in recent years. But, says Ougendal, "We are hopeful that as the winner in Europe, we will represent these region's developments from their best side."

"This proves that good quality, good design and hospitality done right are still what makes this industry", commented Iselin Skogland, Director of e-HotelServices (www.e-hotelservices.com) - a hospitality focused eMarketing and Web agency in London. "These awards and the economic performance of the Beach Club prove that even though the market is tough, people are willing to buy if you deliver a good product."

Source: PR Web

Fines to lessen Euro economic imbalances

Steph Engall — Wed, 29 Sep 2010 14:44:00 GMT

Under European Commission proposals to lessen the economic imbalances, countries in Europe could face fines for uncompetitive wages or house prices...

Countries that ignore recommendations to strengthen their competitiveness could be fined as much as 0.1 percent of gross domestic product, a senior commission official told reporters in Brussels today.

The penalties, which Ireland or Spain might have faced on the eve of the financial crisis, will be part of a "credible sanctions regime" to be proposed tomorrow, the official said on condition of anonymity.

With Ireland's deteriorating public finances looming as the euro's next test, the proposals are designed to plug holes in an economic management system that in May forced European governments to offer 860 billion euros ($1.2 trillion) in loans and pledges to blunt speculation that the currency union might break up.

Penalties for imbalances such as outsized current-account deficits would be imposed "asymmetrically" on weaker economies, such as Portugal or Greece, the official said. Germany, with its trade surpluses, wouldn't be penalized for being too competitive.

The official didn't spell out how imbalances would be judged. While house prices will be one component of a planned competitiveness scoreboard, Europe-wide property-price statistics are not yet reliable enough to be used for "legally binding purposes," the official said.

The proposal will require approval by European governments and the European Parliament. The commission hopes it will take effect by mid-2011, the official said.

Source: Bloomberg

Portugal urged to act quickly to gain market confidence

Steph Engall — Tue, 28 Sep 2010 15:09:00 GMT

In order to ensure vital support from investors, the Portuguese government is looking to consolidate public finances...

The Portuguese government needs to act fast to shore up its public finances, maybe with tax increases, the OECD stressed on Monday.

"The immediate challenge is to foster investor confidence by rapidly consolidating the public finances," the Organisation for Economic Cooperation and Development said in a report on Portugal.

Action should be taken "swiftly," with the government being prepared "to raise taxes, focusing on those that are the least distorting to growth, such as consumption and property taxes." The report also suggested extending a freeze on government salaries, adopted this year, up to 2013.

Portugal is struggling with a huge public debt, raising fears for its solvency elsewhere in Europe and driving up the government's cost of borrowing on the sovereign debt market. Its debt is expected to expand this year to more than 142 billion euros (191 billion dollars), or 86 percent of gross domestic product, well beyond the 60 percent stipulated by EU and eurozone rules.

The government, which is in a minority position in parliament, is having trouble overcoming opposition to its 2011 budget from the centre-right, which rejects another round of tax increases. Socrates has warned that his government could resign if the budget, which must be presented to parliament before October 15, is rejected.

As a member of the eurozone, Portugal is bound to hold the annual public deficit to under 3.0 percent, and should move towards a surplus in times of growth. European finance ministers are meeting in Brussels on Monday to debate sanctions for countries which consistently abuse such regulations.

Source: The Press Association

Portugal wins numerous nominations for World Travel Awards

Steph Engall — Tue, 28 Sep 2010 14:47:00 GMT

Nominated for ‘World's Best Destination', ‘Best Cruise Destination' and ‘Best Cruise Port', Lisbon is hopeful for a victory at the 2010 World Travel Awards ceremony in London on the 7th of November...

Created in 1993 the World Travel Awards aimed to stimulate competition and quality within the international tourism sector by globally promoting the best destinations and services rendered. Now referred to as the ‘Oscars of Tourism' the nominees are painstakingly chosen based on online votes from thousands of travel professionals from around the world.

In less than two years Portugal's capital city has propelled itself to sit comfortably amongst Europe's most enticing destinations, collecting an assortment of awards along the way that prove the worthiness of its heady ascension.

In January this year, for the second year running, the city collected the award for ‘World's Best Hostel' at the eighth annual Hoscar (Hostelworld Customer Annual Ratings) Awards ceremony, in Dublin.

In April, Lisbon was voted ‘Europe's Best Holiday Destination' in a survey conducted by the European Consumers Organisation, which described "the wonderful city" as "the most beautiful place to go [in Europe] for a trip or a week".

Lisbon beat off competition from destinations such as Barcelona, London, Copenhagen, Bilbao, Lyon, Amsterdam, Berlin, Prague and Helsinki, which together, and in that order, formed the top ten for 2010.

These achievements followed a string of recent awards, including one from travel website Lonely Planet, which described Lisbon as a "seductive mermaid" and ranked the Portuguese capital as one of the ten-top cities to visit.

Just this week, Lisbon was voted by one of the world's leading travel advice websites as Europe's ‘Most Affordable' holiday destination. According to a survey conducted online by the well-known travel advisory website TripAdvisor, Lisbon, while not being the most attractive, cleanest or safest European city, is the most affordable for people looking to take a break in Europe.

According to the nearly 3,000 people who took part in the survey, Lisbon is more cost-friendly than Prague (Czech Republic) and Istanbul (Turkey), which took second and third place respectively.

Source: The Portugal News Online

Commercial distressed growth highest in Portugal

Catherine Deshayes — Tue, 10 Aug 2010 07:27:00 GMT

Growth in commercial distressed property listings is easing in many global markets but Portugal, the US and Irelands are still experiencing the largest rise, according to research...

The situation is easing in 85% of countries surveyed in the Royal Institution of Chartered Surveyors and emerging markets are seeing less strain that the more established markets, it latest global distressed property monitor shows.

In the second quarter of the year some 13 out of the 25 countries reported an increase in distressed sales, an improvement on the 17 countries reporting three months earlier. The largest growth in distressed sales was reported in Portugal, followed by US and Republic of Ireland.

However, the pace of increase moderated across the majority of markets with only three countries, Portugal, Spain and Germany, reporting that distress in the market is increasing at a faster pace than last quarter.

By way of contrast, eight countries reported a decline in the number of distressed properties coming to market compared to three months earlier. The pace of decline was greatest in Brazil, Russia, India and Hong Kong. While surveyors in Japan indicated a modest turnaround, where the net balance fell from +19 to -6. Other countries showing marginal declines were Canada, Australia and China.

Looking ahead real estate professionals expect the number of distressed properties coming onto the market in the third quarter of 2010 to increase further in 14 of the 25 countries surveyed, down from 18 in the previous quarter.

Respondents in Portugal and the Republic of Ireland expect to see the fastest growth in activity followed by the US, Spain and Scandinavia. However, there is positive news from Brazil, China, Hong Kong, Canada and India where agents expect distressed sales to continue to decline.

‘Growth in distressed listings eased back globally outside of Portugal, Spain and Germany in the second quarter. That said, distressed listings are still rising albeit at a slower pace in much of the rest of Europe and the US. A clear divide appears to be opening up between these markets and the rest of the world,' said Oliver Gilmartin, RICS senior economist.

Looking ahead he believes that despite the ‘supposedly successful' European bank stress tests, worries over the health of the European banking system will continue to linger, propelling banks to manage down their problem loan books.

‘Indeed, changing international regulations are likely to start raising the cost of capital of holding commercial property on bank's balance sheets, which could be the trigger for increased listings in the coming year,' he added.

Source: www.propertywire.com

High loan to value mortgages: the risks

Catherine Deshayes — Mon, 19 Jul 2010 07:18:00 GMT

Infinito Real, a Portugal based group of property investors, has seen a growing number of clients searching for mortgage deals that involve putting little or no money down in order to purchase a property...

Although these types of deals have always been difficult to obtain, Stephen Anderson, Managing Director of Infinito Real, confirms that it has been possible and could potentially still be, for now. Looking at the best deals to be had now, Stephen offers his advice on potential changes in the Portuguese mortgage system and costings in the near future.

The premise behind 100 percent financed mortgages is simple, the property is valued at 20% or more above the purchase price allowing an 80% loan-to-value (LTV) mortgage to be taken out, thereby eliminating any need for the buyer to part with any money at all, other than buying costs. According to Anderson, the reason these deals have been difficult to obtain is not because of the property itself but the actual client purchasing.

He comments: "Typically these high LTV mortgages have been constrained to borrowers that have, and can prove, a high income. For example to obtain a €200,000 mortgage on a 100% finance deal, you should look to be able to prove around €3,000 NET income per month (between both applicants if jointly purchased), otherwise the banks will more than likely decline the application. Currently, if you can meet this criteria then there is still a good chance of being able to still purchase in this manner but only for the time being."

However, Anderson does warn that banks are becoming more cautious and much more stringent with their criteria for lending due to rising interest rates. "On high LTV mortgages, the interest rate on offer is significantly higher than that of a 70%, or even 75% mortgage, and the bank has all the risk. Buyers can walk away without any financial loss and the banks are stuck with the property. We have seen this happen in huge numbers in Spain and it has cost the banking institutes heavily. We saw an increase in rates at the start of June and with predicted increases due shortly lending could become even tighter, which is no bad thing as there are still some great deals to be had."

Anderson continues: "For the qualifying buyer there are still some fantastic mortgage products available. With rises that lie ahead, the chances of looking in a sub 3% mortgage rate will be out of reach by the end of next year. Therefore, I would advise anyone who can buy now to do so as this time next year it would be prudent to expect rates of around 5% again. Interest rates are fixed for the term of the mortgage, so if you can get a low rate now it will remain so for the lifetime of the loan, the only increases will come from the Euribor which will not be heavily increased for some time to come. Currently the best rates available for 80% LTV based on valuation (allowing for 100% of purchase price) is around 4% (3% spread + Euribor, currently 0.7%), which is almost double what it was at the start of the year. Compare that with the rate for a 70% or 75% LTV mortgage at 2.6% (1.9% spread + Euribor) and there is a large difference. Also, the options available for the lower LTV percentage are much more cost effective and less troublesome to acquire."

Finally, Anderson advises that to be assured of getting the property you're looking for, you should expect to have to find at least 20% of the purchasing price, if you have a good financial history demonstrated over the last six months bank statements.

Lisbon palace to restore

Catherine Deshayes — Thu, 20 May 2010 09:56:00 GMT

A forgotten 18th century mansion in the heart of the Portuguese capital has been launched on the market...

Sotheby's International Realty Portugal has launched Quinta das Águias, an 18th century palace in the heart of Lisbon, to the market.

Situated between Rua da Boa Hora and Rua da Junqueira, it was built by Manuel Lopes Bicudo and later acquired by D. Diogo de Mendonça Corte-Real, State Secretary of the Navy and Overseas Affairs of King Joseph I of Portugal, in 1731.

With four floors, 24 rooms, 10 bathrooms and five parking spaces, the magnificent Quinta das Águias Palace was known in its day for its extravagant balls and is regarded as one of the forgotten architectural treasures of the Portuguese capital.

Price guide: €20 million

Contact: www.sothebysrealtypt.com

Source: www.countrylife.co.uk

Portuguese market recovering?

Catherine Deshayes — Thu, 25 Mar 2010 10:37:00 GMT

The Portuguese commercial real estate market is showing signs of a gradual recovery after all sectors experienced a severe downturn in 2009 that amounted to its worst ever year on record, according to a new report...

It is ready to recover, albeit at a very modest level, as confidence improves and activity levels begin to increase, says the report from consultants Jones Lang LaSalle.

‘As we moved into 2009, expectations could not have been worse for the property market, with the economy in recession and the investment and occupation markets shrinking. However, by the end of 2009 the extremely pessimistic forecasts did not materialise and the market adapted itself to the new circumstances, which in turn is leading to a return of confidence,' said Manuel Puig, managing director of Jones Lang LaSalle Portugal.

‘The real estate market is not set for a complete recovery in 2010, but the year has started with increasing positive sentiment and all the signs suggest that some sectors will put in a better performance this year compared to last year,' he added.

The report outlines several positive signs across the commercial property sectors in Portugal that seem to point towards a slow recovery of the market in 2010. In the investment market, demand is expected to continue at the same pace as in the last six months of 2009, driven forward by improved access to finance, the return of foreign investors and the bigger demand for subscriptions of national funds.

In the retail sector, Jones Lang estimates that retailers will seek to resume their expansion plans, albeit modestly. The forecast for the offices sector is less optimistic as both take-up levels and rents are expected to remain at the 2009 levels.

According to Jones Lang LaSalle, 2009 was one of the worst ever years on record for Portugal's real estate market. This was chiefly due to the economic crisis that was strongly felt both at national and international levels, resulting in declining performances in practically all segments.

Only projects with guaranteed chances of success went ahead and the same attitude is likely to prevail in the coming months regarding the provision of new supply. There was a steep fall in investment, the report shows.

In 2009, the real estate investment market in Portugal transacted €393million, which was 44% less than in 2008, with 65% of this volume transacting in the second half of the year. The retail sector saw the largest fall in volumes last year compared with previous years where it was the most dynamic sector and proved extremely attractive for foreign investors.

‘Despite the sale of the Torre Oriente completing in the second half the year, 2009 generally witnessed smaller transactions of volumes between €3 to €10 million, mostly in the retail sector in stand-alones,' said Pedro Lancastre, head of Capital Markets at Jones Lang LaSalle Portugal.

The logistics and industrial warehouse market, like all others, was equally affected by the economic crisis and consequent slowdown in companies' activity. The take up of new space stagnated, and the only reason it did not suffer large decreases is because a large proportion of the development in this sector takes place only after pre-leasing agreements have been reached, the report adds.

Source: www.propertywire.com