News

EU crunch time: Your real estate escape routes

Ivan Radford — 26/10/2011 12:07:00

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/

Euro'd be mad not to move to Portugal

admin — 02/08/2011 11:29:00

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

Investors primed for property discounts in Portugal

Sarah Kendell — 14/06/2011 11:21:00

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/

Universal healthcare to ease costs for EU travellers

Sarah Kendell — 18/03/2011 10:41:00

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 — 16/03/2011 10:56:00

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/

Industry leaders call for joined-up Portuguese promo campaign

admin — 22/11/2011 06:59:00

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 — 14/11/2011 06:52:00

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 — 28/10/2011 05:23:00

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 — 27/10/2011 06:15:00

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

Poor economic outlook affecting property market in Portugal

Ivan Radford — 24/10/2011 07:50:00

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 — 10/10/2011 10:30:00

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 — 26/09/2011 09:26:00

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 — 05/09/2011 10:43:00

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 — 31/08/2011 06:12:00

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 — 15/08/2011 11:43:00

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

More interest in buying overseas properties

admin — 01/08/2011 13:42:00

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 — 27/07/2011 09:43:00

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 — 26/07/2011 06:16:00

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 — 19/07/2011 06:31:00

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 — 14/07/2011 12:05:00

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 — 11/07/2011 11:52:00

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 — 06/07/2011 07:46:00

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 — 05/07/2011 08:40:00

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 — 22/06/2011 06:23:00

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 — 17/06/2011 07:37:00

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

Portugal confirms opening of new 27-hole golf course

admin — 13/06/2011 12:22:00

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 — 02/06/2011 08:17:00

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 — 01/06/2011 07:34:00

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 — 18/05/2011 06:42:00

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 — 16/05/2011 11:24:00

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 — 12/05/2011 07:45:00

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 — 06/05/2011 07:17:00

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 — 05/05/2011 07:58:00

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 — 27/04/2011 10:53:00

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 — 19/04/2011 07:16:00

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 — 14/04/2011 10:39:00

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 — 08/04/2011 03:59:00

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 — 07/04/2011 13:12:00

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 — 07/04/2011 09:53:00

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 — 05/04/2011 11:41:00

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 — 01/04/2011 10:53:00

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 — 31/03/2011 12:50:00

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 — 28/03/2011 11:49:00

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 — 28/03/2011 10:58:00

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 — 24/03/2011 12:25:00

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 — 23/03/2011 11:38:00

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 — 21/03/2011 13:22:00

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

Portugal tightens budget further to avoid bailout

admin — 14/03/2011 11:00:00

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

Portugal, Greece debt ratings could worsen

admin — 03/03/2011 13:16:00

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 — 28/02/2011 12:08:00

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 — 24/02/2011 12:04:00

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 — 23/02/2011 12:58:00

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 — 23/02/2011 12:52:00

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 — 18/02/2011 13:29:00

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 — 18/02/2011 13:19:00

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 — 15/02/2011 10:44:00

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 — 04/02/2011 11:15:00

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 — 03/02/2011 11:46:00

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 — 02/02/2011 11:24:00

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 — 01/02/2011 11:32:00

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 — 28/01/2011 10:50:00

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 — 12/01/2011 11:51:00

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 — 10/01/2011 16:10:00

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 — 22/12/2010 19:11:00

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 — 19/12/2010 15:47:00

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 — 30/11/2010 19:53:00

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 — 19/11/2010 09:56:00

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 — 04/10/2010 12:34:00

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 — 29/09/2010 14:44:00

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 — 28/09/2010 15:09:00

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 — 28/09/2010 14:47:00

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 — 10/08/2010 07:27:00

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 — 19/07/2010 07:18:00

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 — 20/05/2010 09:56:00

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 — 25/03/2010 10:37:00

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

Recession creates ‘rich get richer' market

Catherine Deshayes — 23/03/2010 11:47:00

Infinito Real, a Portugal based company started and run by property investors, have seen a vast change in the type of client they are getting in comparison to last year and believe this "high earning, big investment" trend will continue to grow up to the end of the year. So have continuing low interest rates and reduced property prices only benefited a certain clientele?..

Last year, the majority of customers for Infinito Real were what one would deem as "lifestyle" clients - someone who has saved to purchase a property for themselves to use for a prolonged period of time, or for a permanent move. However, the demographic has changed rapidly over the last year and 2010 has brought about a high influx of new clients who are in a much higher income bracket. With more disposable funds, these clients are looking for investment properties that can double as holiday homes.

As the climate continues to stabilise those who had not been looking into property investment before realise the time to capitalise is now. With mortgage rates particularly favourable for those clients with wealth, and therefore low risk, and the prestige of owning a property in a luxury area such as the Algarve, the appeal is much higher than leaving it in the bank and perhaps making a 3% return.

Stephen Anderson, Managing Director of Infinito Real comments, "The ‘boom' of 2007 was a time of property madness, where there was a frenzy to buy as much as possible which ultimately left many in a financial nightmare. In those days the idea of buying abroad was still relatively new and the implications not always fully understood. Nowadays buyers are much more savvy, taking elements such as location and type of property into consideration. Generally speaking the two bedroom, two bathroom apartment is the bench mark for the majority of buyers, with at least a swimming pool on site and only a short drive to the beach. These types of properties in high yield rental areas are extremely popular, which when coupled with a large discount can bring in rental returns in excess of 10% per annum."

The key for those "lifestyle" buyers who are still looking to fulfil a lifetime ambition of owning a property in Portugal is to remember the benefits of a Portuguese mortgage are still very appealing. Stephen continues "Generally my advice is, if you are interested in a property discuss the types of loans available and the associated repayments with a mortgage brokerage. Set yourself a monthly budget that you are comfortable with and see how much you can borrow without over stretching. Certain areas will yield a better return if you "need" to make an income from the property so look for a bargain that will put you in a strong position to sell at a good price in the future, lowering the risk of becoming stuck with a property you can't sell on."

On the recent Forbes rich list, the average increase across the top earners in the world has gone up by $500 million, the time to invest is when the market hits the bottom, and right now is that time!

The Algarve ‘still on everyone's wishlist'

Catherine Deshayes — 19/03/2010 10:58:00

Sweeping beaches, year-round sun, the best golf courses in Europe. It's no wonder that Portugal's Algarve scores highly among British buyers looking for a second home.

The long-established Central Algarve with its top-hole tourism has overtaken the over-marketed newcomers in the Silver and Blue Coasts around Lisbon.

Property in the less-developed western Algarve might have suffered price drops of 30 per cent, but holiday homes in the so-called Golden Triangle have lost none of their lustre.

Prices in the tranche of coast between the two high-end golf resorts of Vale do Lobo and Quinta do Lago, with the town of Almancil at its apex, remain high.

'There's been little downward movement because most owners don't have to sell,' says Georgina Richards, of Knight Frank.

The key to the area's success is its track record. It's survived a downturn before and has the right ingredients to tempt buyers - beaches that don't get overcrowded, a 20-minute transfer from Faro airport, and first class resorts.

'On the Algarve, the Golden Triangle is on everyone's wish list - if they can afford it,' says Georgina.

Source: www.dailymail.co.uk

IMF: Global decline 'may not be over'

Catherine Deshayes — 12/03/2010 11:35:00

House prices in the world's major economies, which in 2009 were down an average of 5 percent from 2007, may keep dropping, said Prakash Loungani, an adviser to the International Monetary Fund's research department.

"The corrections thus far have not erased all of the excesses generated by the house price increases," Loungani wrote in the March issue of the IMF's "Finance and Development" magazine. "That leads to an uncomfortable conclusion: house prices in many countries still have room to fall."

Loungani didn't single out individual countries where homes may be overvalued. The article said prices will probably decline further because they remain "well above" levels seen at the start of the housing boom around 2000, and also because values are higher than rents and income, which "serve as long-run anchors" on the cost of residential real estate.

Loungani said that between 1970 and the mid-1990s, increases in home prices in 18 nations lasted about five years on average, and values climbed 40 percent after adjusting for inflation. During that same 25-year span, declines lasted an average of about four-and-a-half years and prices fell about half as much as they rose, the article said.

In contrast, the most recent global housing expansion lasted 41 quarters, almost twice as long as average, and prices rose three times as much.

"Because prices rose much more sharply than in earlier upturns, their decline might eclipse those observed in the past," Loungani wrote

Source: www.businessweek.com

Investors mad for the Med

Catherine Deshayes — 11/03/2010 09:42:00

Mediterranean countries are proving more popular among those searching for overseas property as the focus turns away from wintry destinations to summer dreams, according to the latest foreign real estate index.

Some 60% of locations saw an increase in searches, with Alentejo in Portugal the top climber in February going up 22 places with searches up by 27.3% in the Rightmove overseas monthly index.

Tuscany consolidates its place as the favourite Italian region with an increase of 12.5% in searches, the report also shows.

Emigration hotspots New Zealand, Australia, and Canada are biggest losers in the country chart, down an average of 17% on January as the peak emigration season starts to tail away and those simply dreaming of emigration, rather than actively investigating it, loses impetus.

Oceania's loss was the Mediterranean's gain though, with good lifts in search activity for Greece, up 8.2%, Malta up 11.3%, Spain up 2.5% and Italy up 0.9%.

But Germany's recent climb has halted with Berlin the biggest faller, down 44.6% on January. But the gains made through summer 2009 look like being permanent and it may only be a matter of time before Germany joins the Top 10, according to the report.

'After adjusting for this being the shortest month, February actually saw an increase on January searches, in stark contrast to last year's drop off after the January peak. Year on Year February searches are up 54% on 2009 which is really encouraging for the market,' said Robin Wilson, head of overseas at Rightmove.

'We're also starting to see signs of increased confidence from advertisers. This month, the number of new advertisers choosing longer contract periods doubled on January's new joiners, indicating an much improved long term outlook on the state of the market,' he added.

Source: www.propertycommunity.com

Algarve set to soar

Catherine Deshayes — 05/03/2010 11:06:00

Property investors considering the Algarve have received some very encouraging news this week.

Ryanair recently announced it will open its 39th base at Faro in March 2010 with 6 based aircraft and 14 new routes (28 in total) being launched. The popular budget airline will operate over 200 weekly flights to/from Faro in an investment of over $400 million in the airport.

The new routes have been launched to help satisfy increasing demand for easy, affordable access to the region from across Europe. Portugal has a strong and sustainable tourism demand with 11 million visitors in 2009 (WTTC) and annual growth of 3% forecast until 2017.

The new routes which include Faro to Birmingham, Kerry and Knock will make the Algarve even more easily accessible from the UK and Ireland, a good indication that the region will see an increase in tourism numbers which in turn will generate higher demand for quality accommodation in the region.

This is good news for the recently launched Gotel an apart-hotel or hotel room investment opportunity perfectly located in the sought after western Algarve, overlooking the spectacular Praia Tres Irmaos at Alvor. The hotel is owned and operated by the Pestana Group, Portugal's largest hotel and leisure operator, with a 30 year track record and thus assuring the future success. The hotel itself has a 15 year operating record.

Steven Worboys, MD of the specialist overseas property investment company Experience International, stated: "The Gotel presents a unique opportunity to invest in a boutique hotel in Portugal's highly sought after Algarve region. This project represents a next generation approach to property investment; apart-hotel rooms are widely regarded as a first-class turnkey investment product that are fully managed for the investor and require minimal involvement."

Source: www.property-for-sale-in-portugal.co.uk

The future's bright for ‘positive' Portugal

Catherine Deshayes — 03/03/2010 10:55:00

The Portuguese property market has seen a shift in buyer attitudes recently, with investors increasingly choosing to buy for pleasure rather than profit, claims one expert.

Stephen Anderson, Managing Director of Infinito Real believes the recent "boom" in business to the Portuguese property market can be attributed to a number of factors.

He explaineds: "The start of 2010 has seen more positive press coverage for the property industry as a whole, and with less focus on the global recession, confidence to invest has started to increase.

"We have seen that a number of buyers who postponed their plans in 2009 are now ready to move which has created a backlog of buyers wanting to move as soon as possible. The small increase in the exchange rate from £1 - €1 throughout most of 2009, up to £1 - €1.15 has provided a 15% "discount" from previous months and has had a profound effect."

A further notable has been the vast reduction in the number of distressed sales, a forced sale with a discount of at least 20% from the original price. Even though distressed sales have always been available, the economic downturn saw a considerable increase of people in financial difficulty including both individual sellers and also larger developers.

Stephen added: "Ironically, 2009 was the best possible time to buy a property in Portugal and the worst time to sell. At the peak of the recession we had in the region of 150 "distressed sale" properties and with high appeal to the majority of investors they sold very quickly. We currently have less than 10 and with the restabilising of the market place I think it is unlikely we will see any further bouts of desperation from developers slashing prices."

Source: Infinito Real - www.portugalvillasandapartments.net

Portugal property ‘great value'

Catherine Deshayes — 17/02/2010 10:36:00

A long standing myth that if you buy a property in Portugal you end up paying between 10 and 15% extra on top of the purchase prices in fees and tax has been revealed as wrong...

For years, publications, websites and TV programmes have been warning that if buying in Portugal you need to allow for the extra cost involved, but according to Jim Edmeades of homes for sale in Portugal the true figure is around 5%.

The company gives an example of a house with land costing €200,000. Purchase tax would be €3,995, land tax €1,200, stamp duty of 0.8% would amount to €1,600, lawyer fees around €1,000, a notary about €350 and registration €355.

‘The misunderstanding has its origins decades ago when you could buy a quite substantial property in Portugal for €10,000. Extras could well amount to €1,500 so that was where the 15% figure came from,' explained Edmeades.

‘It has been copied from one publication to another down the years and exploited by a number of less than scrupulous lawyers and real estate agents who offer to "take care of extras" for an additional 12.5 or 15%. In some cases they may well be the very same who people who advise the editors. Hence a myth has become firmly rooted and editors have become unwitting accomplices to a very sharp practice,' he added.

He believes that they myth is deterring would be buyers so a group of local estate agents have got together to try to set the record straight. ‘What we are saying is please check out the figures for yourself and put an end not just to a myth but to what amounts to fraudulent practice,' said Edmeades.

He says that currently the Portugal property market and holiday rentals are as buoyant as ever and despite the unpredictable currency markets around the world properties in Portugal to buy or rent continue to be good value for money and as an investment.

‘Whether you are looking for property for sale, a holiday rental or an overseas investment the Portugal property market is still considered to be one of the safest markets in Europe,' he added.

Source: www.propertywire.com

Agent's top tips for second home buying

Catherine Deshayes — 21/01/2010 13:43:00

If we had a bottomless pit of funds, these are the places that we should be buying a home this year, according to Knight Frank...

The message from the international sales team at Knight Frank this week is that perennially popular or ‘core' locations are the most sensible places to go second home hunting in 2010.

Italy

Chianti in Tuscany: has seen increased interest as buyers revert to the trusted markets in times of trouble

Venice: one of the only places in Italy which has a good year-round rental market

Florence: Italians are increasingly interested in buying city apartments

Bargains: Northern Tuscany - the area known as the Garfagnana - is still offering good value for money, has excellent access to the coast and Pisa airport.

Mallorca

South West of the island: Bendinat is close to Palma, has good golf courses, the new marina at Port Adriano, and international schools

Deia: the favourite with Bohemian expats and arty types and restricted building will keep supply short

Bargains: Prices for property in inland villages such as Alaró, Bunyola and Santa Maria have come down by about 15%

France

St Tropez: recent planning law banning building within 300m of the coast has restricted supply

Dordogne and Gascony: investment in Bergerac's airport is dispelling rumours that budget airlines might be pulling out

Alps: Chamonix where prices are now more affordable

Portugal

Western Algarve: where prices have come down by about 30 per cent.

Source: www.countrylife.co.uk

December Top of the Props

Catherine Deshayes — 20/01/2010 10:24:00

Spain ousted the USA in December's Top of the Props chart - which provides a monthly pop chart snapshot of the most popular countries on the site - Portugal remained in third place - the position it had occupied in November's chart - so let's check out what the property industry thinks the country has to offer investors and holidaymakers alike in 2010...

Portugal

Let's start with a comment that will have the tourists flocking to Portugal should it prove true.

Portugal football captain Cristiano Ronaldo told Goal.com that he expects next summer's World Cup in South Africa to be the best ever finals tournament and he also believes his team has what it takes to go all the way to glory.

"Our team will be more mature in South Africa. We will be a team that went through some difficult stages in qualifying. In recent months many things have improved, a team doesn't happen overnight.

"There are several teams that can win the World Cup and Portugal is among them. But we need good things to happen: we must work hard, we have confidence. We have the support and we can get lucky, or at least hope that the luck we have is not bad," he said.

Meanwhile, Homes Go Fast expects Algarve tourism to rebound in 2010.

"Portugal's Algarve Region expects more tourism in 2010. The most recent annual survey by the regional tourism board, ERTA, indicated that local officials and businesspeople expect the area's tourism sector to rebound in 2010. Approximately 32 percent of those surveyed said that 2010 will show increases over 2009, while 41 percent indicated things will remain the same. Another 23 percent are looking for things to get worse this year.

Those who took the survey also indicated that the Algarve Region should invest in drawing visitors from traditional markets but also new ones. Traditionally the Algarve draws visitors from the UK, Ireland, Germany, Holland and Spain, while newer markets include Russia and Eastern Europe as well as Scandinavian Countries."

Property-Abroad.com suggests that Portugal offers a good alternative to old favourite Spain this year; "Portugal's economy is now firmly out of recession, with a 0.9% growth in the third quarter, following the 0.5% growth recorded the quarter before.

Portugal's economic strength is leading to Portugal property becoming very popular. It is apparent that some of those people currently enquiring into and buying Portuguese property, are those who would normally have been looking at Spain, but are choosing Portugal because its economy is in much better shape than its neighbours.

There is another reason for Portugal's current popularity, according to Liam Bailey, director of sector specialist copywriting company Write About Property.

"The people who are currently buying overseas property are those well enough not to have been affected by the downturn thus far. They are returning to market now because, as it becomes more clear that the recovery is underway, it becomes less likely that they will be affected. Golf is a very popular sport among those who are "well off", so the Algarve, Europe's golf centre is obviously doing very well with the current wave of buyers," he said.

The fact that Portugal property prices are currently growing, according to the Knight Frank index of global house prices, is undoubtedly also a factor in Portugal's current popularity with overseas property buyers.

As is the array of excellent offers currently being made by developers and agents in the country. Things like: free furniture packs, maintenance fees paid for 2 years, cash back, guaranteed rental yields and more -- most properties are also mentioning the availability of financing for Portugal property purchases."

And ANSAmed suggests that 2010 will be good for the Portuguese economy too, predicting that it will grow by 0.8%, after the 2009 GDP reading of a 3.2% downturn.

The country is reportedly to grow at a slightly faster rate than the Euro Zone (0.7%), but unemployment will continue to increase over the coming year representing an obstacle for economic growth as well as the public deficit.

Excluding Spain, the only economy in the Euro area that will still be in the crisis in 2010, the primary client economies for Portugal - Germany and France - will record expansion above the Euro Zone average which the Portuguese economy might also benefit from.

But its not all roses for Portugal - for the Fitch, Moody's and Standard & Poor's ratings agency, Portugal will be the last country to come out of the crisis. The increase in unemployment, the high deficit, the public debt and external accounts in the red are the reasons that explain the weak future importance of the Portuguese economy.

Other movers and shakers

Spain forced the USA into second place, swiftly followed by Portugal and Bulgaria. Brazil was pushed into fifth place in December's chart, with Italy chasing close behind. Turkey and France took seventh and eighth places respectively - a drop from fifth and sixth places.

Rounding out December's Top of the Props chart was Cyprus in ninth place and Thailand in tenth.

December Top of the Props Chart

Spain

USA

Portugal

Bulgaria

Brazil

Italy

Turkey

France

Cyprus

Thailand

Check out properties for sale in Portugal at http://portugal.themovechannel.com/

Picture of Lisbon by Carlos Ebert

Ryanair opens 39th base in Faro

Catherine Deshayes — 22/12/2009 10:48:00

Ryanair has announced that it would open its 39^th base at Faro, Portugal, in March 2010 with 6 based aircraft and 14 new routes (28 in total) being launched. Ryanair will create over 300 direct jobs and offer over 200 weekly flights to/from Faro in an investment of over $400 million in the airport...

Ryanair's 14 new routes from Faro to Billund, Birmingham, Derry, Eindhoven, Kerry, Knock, Madrid, Marseille, Maastricht, Milan (Bergamo), Oslo (Rygge), Paris (Beauvais) and Stockholm (Skavsta) will increase Ryanair's traffic at Faro to 1.3million p.a. which will sustain 1,300 well paid local jobs in the region.

Ryanair's Michael O'Leary said, "Ryanair is delighted to announce Faro as our 39^th base with 14 new routes from next March. With a total of 28 low fare routes from Faro next summer Portuguese consumers and visitors can beat the recession by choosing Ryanair's lowest fares and our no fuel surcharge guarantee on 28 exciting destinations all over Europe including France, Italy and Germany among others. Ryanair's 1.3m passengers p.a. will sustain 1,300 jobs locally at Faro Airport."

14 New Faro routes in 2010 to:

To	Date	To	Date

Birmingham	28 Mar	Maastricht	27 Apr
Derry	30 Mar	Memmingen (Mun)	27 Apr
Eindhoven	27 Apr	Milan (Bergamo)	25 Mar
Kerry	30 Mar	Oslo (Rygge)	30 Mar
Knock	30 Mar	Paris (Beauvais)	27 Apr
Madrid	27 Apr	Stockholm (Skavsta)	30 Mar

Zara Phillips builds first home abroad

Catherine Deshayes — 11/12/2009 12:05:00

Zara Phillips, 2006 World Eventing Champion and BBC Sports Personality of the Year, has chosen the CampoReal Golf Resort and Spa on Lisbon's Silver Coast as the location to build her first home abroad...

CampoReal was the site used in centuries past by Portuguese Kings to exercise their horses and is located just thirty minutes north of Portugal's cosmopolitan capital Lisbon. The resort was established by Eduardo Netto de Almeida in 1998 and opened its doors in spring 2006. It now boasts 372 properties comprised of villas, townhouses and apartments, a luxurious five-star hotel, an 18-hole golf course and an equestrian centre.

Zara says of her decision to build at CampoReal Golf Resort & Spa: "Since we first met, Eduardo and his family have made me feel really welcome out here and I find I unwind quickly as everyone is very friendly but in a relaxed way. My villa will be built on the edge of vineyards that have been there for centuries, there are stunning beaches nearby and Mike [Tindall] and I can improve our handicaps on the golf course. The decision to build my holiday home here was pretty straightforward really."

Zara is preparing to defend her title at the World Equestrian Games in 2010 and given her busy training regime, convenience played a key factor in her choice.

"With my schedule it can be tricky to squeeze in time for holidays overseas but Lisbon is really accessible to Gloucestershire flying from Bristol or Heathrow. As the travel time from door-to-door is only a few hours, I plan to use the villa as often as I can."

Founder of the resort and an accomplished rider in his own right, Mr Netto de Almeida says: "We are extremely proud to welcome Zara to CampoReal Golf Resort & Spa. I founded the resort with the vision of attracting international clientele to enjoy our rare combination of cultural city life, countryside and beach living. Working with Zara to build her holiday villa here is the embodiment of that vision."

With the renovation of her Cheltenham property now well underway, the villa in Portugal will be Zara's first new build property. She is currently working with the architect onsite to create a villa that will take full advantage of its unique position in the resort.

The four-bedroom villa, situated in the new and secluded Vineyards section of the resort, will be traditionally Portuguese in style but will have some modern architectural influences. The open-plan living spaces are designed for the Silver Coast's warm climate to make the most of the light and sunshine.

After viewing many completed properties in the development, Zara believes she has a good understanding for the designs and layouts that work in local environment.

"One of the highlights of the section I've chosen is the view out across the rolling vineyards and fact you can see the sunrise and sunset. I would like the focus of the villa to be around relaxing and entertaining spaces. There will also be plenty of room for guests so I will be using the entertaining spaces for just that!"

As well as consulting with the architect on the villa's layout, Zara is also working with a renowned Portuguese interior designer, Christina Martins, on the décor which will make the most of the sunshine and natural light and combine traditional designs with some more contemporary influences.

The villa, situated on the edge of a working vineyard, also features landscaped grounds, large outdoor entertaining areas and a swimming pool.

"Although I plan to come here as a break from my training regime, my villa will have a swimming pool so I can keep fit even when I'm relaxing and I know I won't be able to keep away from visiting the horses at the Equestrian Centre!"

The Equestrian Centre in the resort has stabling for up to 60 horses, a covered arena and a showjumping course with facilities for riding lessons and training competition horses. Plans to redevelop the centre over the next three years have been drafted and Zara has already viewed the plans and commented on them.

Construction work on Zara's villa will begin in the second quarter of 2010.

Prices start from €250,000 for a one-bedroom apartment and €290,000 for a two-bedroom townhouse and €650,000 for a four-bedroom villa. For further information or to arrange an inspection visit please call 020 8940 9406 or visit: www.camporeal.co.uk

October Investment Property Watch

Catherine Deshayes — 13/11/2009 11:48:00

Portugal reigned supreme in October's Investment Property watch chart - which tracks the level of interest in certain properties and countries from visitors to the site - so lets take a closer look at what the country has to offer both investors and holidaymakers...

Portugal

Unlike neighboring Spain - which experienced a major property boom, and resulting bust - Portugal's property market has risen slowly and steadily for the past decade.

There is a strong market in Portugal for buy-to-let property. It is the third most popular European country after Spain and France for this kind of investment and the southern coastline of the Algarve is especially popular, attracting buyers from all over Europe.

The average (sq. m.) price of an apartment in the Algarve is €1,925. Villas average €2,581

The Estoril/Cascais area, the coast near Oporto and the west coast close to Obidos lagoon are also becoming more sought after by buy-to-letters.

Let's take a look at Lisbon. Apartments in Lisbon are relatively inexpensive by European standards at €2,393, and villas are even more attractively priced, with average per square metre (sq. m.) prices of €1,825.

But, as a buy to let destination, Lisbon has its problems. On average, an investment apartment here will bring a gross rental yield of 4.8 per cent, which is ok, but certainly nothing to write home about.

Foreign buyers must obtain a Portuguese tax number, which costs around £14, as well as setting aside an additional 7 per cent for purchase-side costs. These include a transfer tax - six per cent, for properties costing more than 534,700 euros, and a 0.8 per cent stamp tax, as well as registration and notary fees.

Panama

A spotlight is currently being shone on Panama due to the publicity surrounding the trial of the ‘missing' canoeist John Darwin who faked his own death and secretly emigrated to Panama.

As a result of this global news story, alongside the current expansion of the Panama Canal, the country has been pushed onto the world stage in terms of investment potential.

It is currently one of the hottest places in the world for investment of all kinds, particularly property. The expansion of the Panama Canal, one of the Southern Hemisphere's most important waterways, is slated for completion in 2014 and this will boost the country's economic growth massively.

The expansion of the Canal is going to triple its capacity, meaning that the revenues from free trade and exports are also likely to triple, sending GDP skyrocketing.

The International Monetary Fund has already predicted that the economy is going to boom, which in turn will lead to an increased demand for homes and holiday properties from both locals and foreigners.

American retirees are extremely keen on Panama and are snapping up second homes in the country, leading to a rise in overall property prices.

Other movers and shakers

Snapping at Portugal's heels was the mighty USA in second place, swiftly followed by Panama. The Ukraine made a solid appearance on October's chart in fourth place, another triumph after its appearance in September.

Italy took fifth place with Case Serafini- I've been to the development - it's beautiful - like a more affordable Tuscany with rolling hills and olive groves.

The USA was back again in sixth place, followed by South Africa in seventh. The final three places were snapped by up Turkey in eighth, far-flung paradise Thailand in ninth and - for its third appearance on October's chart - the USA took tenth place.

Table showing October's top investment properties

Rank	Property	Country	Company
1	Vilamoura Resort	Portugal	Armchair and Co
2	Grande Oasis, Tampa, Florida	USA	Property Frontiers
3	Timber investment	Panama	Silva Tree SA
4	Ukraine farmland	Ukraine	Dream Resorts
5	Casa Serafini - new home	Italy	Property Frontiers
6	Orland property	USA	American Dream Investments
7	McLoughlin Spa and Reserve	South Africa	Key Universal
8	Augustus Country Club	Turkey	Property Sun Turkey
9	Bamboo	Thailand	Property Frontiers
10	Investment property	USA	American Dream Investments

Follow the lead of our readers and get excited about Portugal - check out some Portugal properties for sale at http://portugal.themovechannel.com/

Picture of Portugal's coastline by Portuguese_eyes

Silver Coast boom on the horizon?

Catherine Deshayes — 03/09/2009 10:03:00

Property values on Portugal's silver could grow by at least 50 - 75% over the next 5 years, it has been claimed.

The emerging region has some of the finest beaches in Europe, and has never reached its full potential, according to Azure Overseas. The firm believes that the damage done to Spain by the credit crunch and over-development will lead to more and more people favouring Portugal property for holiday homes and holiday home investments in the coming years.

Frank Crowley, Azure director, noted: "Portugal and the Portuguese have been much more responsible about development density on the Silver Coast, and now that we have all seen the damage over-development has done and continues to do in Spain, it is likely to stay that way. Portugal is already a close second to Spain with British lifestyle buyers, and we think that its popularity will continue to grow in the coming years," said

The firm also pointed out that Portuguese property prices are currently a lot lower than in Spain, not counting the current array of distressed opportunities in the latter. This, they say will be rectified from 2010 onwards, when Spain's over-supply problems continue to cause prices to fall, whilst Portuguese property values on the Silver Coast will grow at above the established market average of 10% per annum.

Portugal ‘more affordable'

Catherine Deshayes — 02/09/2009 10:10:00

Portuguese property has become more affordable both in resort areas and other parts of the country, an expert has said.

Speaking to the Irish Independent, director of overseas property company Oceanico Martin Date said the market had seen falls as overseas investors such as those from Ireland have dwindled in the recession.

He noted that in resort areas prices have dropped by around five per cent, while elsewhere the fall has been 25 to 30 per cent. Such dips in cost may interest buyers looking at acquiring property abroad.

Those who do invest in Portugal may be encouraged by news that it was among the countries reporting an end to their recessions last week.

During the second quarter of this year Portugal's gross domestic product grew by 0.3 per cent. This figure was the same as those recorded in the period by France and Germany, bringing their contractions to an end.

Source: Halifax International

July Top of the Props

Catherine Deshayes — 07/08/2009 13:24:00

Following its defeat at the hands of Spain in June's Top of the Props chart, the USA was back on form and nabbed the top spot in last month's chart, which provides a monthly pop chart snapshot of the most popular countries on the site...

USA
Propertywire looks at what is happening to house prices in the USA and predicts whether the price increase could just be put down to typical seasonal price swings...

Residential property prices are soaring beyond expectations in many markets in the US with analysts and market observers starting to talk about a recovery and growing confidence in the real estate sector.

Many are eagerly talking about a slowing of declines in home sales and median sales prices across the US. Phrases being used include 'housing bottom' and 'recovery in sight,' with several financial institutions going so far as to tell shareholders the recession itself is at an end.

But, others are more cautious. For example, even although Radar Logic's RPX Monthly Housing Market Report showed three months of stability in the composite home prices, its chief executive officer Michael Feder has been reluctant to use the word 'recovery'.

In a special report published last week the real estate data and analytics provider acknowledged the encouraging signs of stability in house prices, but refused to be explicit on whether or not the bottom of the market has been reached.

Radar Logic pointed to home prices soaring in many markets beyond the expected levels, given historical seasonal patterns. This trend suggests price increases seen recently are due to something beyond simple seasonal swings.

Along with strong gains in prices studied by Radar Logic, housing starts increased continually since the beginning of the year. Existing home sales rose steadily through the year and new home sales are also on the rise since March, indicating the gain in home sales is not due only to high foreclosure resales as buyers work through foreclosure inventory.

'While houses may sell at a discount from their peak values for years to come, the return to normal seasonal patterns suggests that sustainable appreciation could return to the market soon. Attitudes have changed dramatically since last winter and the fear of many investors has turned to optimism,' the report says.

But the question remains whether the trend will continue through the approaching winter and the expected seasonal downturn, Radar Logic analysts said. Buyers tend to retreat for winter and remain on the sidelines until February, when volume usually picks up again.

So prudent observers like Feder are waiting until winter passes to make judgments on the market, as any current recovery trends should become more apparent between now and next buying season.

'A positive sign to look for is a winter home-price decline that is less severe than would be expected given past seasonal price patterns. This would indicate that consumers' confidence in the housing market is strengthening and that a strong upcoming buying season could be on the way,' the report concluded. (Picture above by David Prior).

Let's look at Portugal, which took fourth place in July's chart.

Whilst Portugal never experienced the sky-high growth in property prices that Spain did, it meant that once the credit crunch hit, the market had less far to fall.

Slow, steady growth - homes in Portugal has been rising by around three to four per cent each year since 2003 - is always going to be far more sustainable than the super-fast boom that Spain has enjoyed over the last few years, prior to the recession.

Property in Portugal often enjoys a higher standard of build quality than in other, more saturated markets such as Spain.

If you are on the hunt for a bargain, there are several key hotspots around the country in which you could consider concentrating your search.

Perennial Portugal property favourite the Algarve still has plenty to offer second home-hunters on a budget, while the country's famous Silver Coast, as well as Albufeira and Vilamoura are also recommended.

John Reilly, Managing Director at BuyAbroad.com, said, "There are some bargains in the Algarve and the Silver Coast is still very cheap.

"Albufeira is still very popular and Vilamoura is top of the list for a lot of people due to affordable prices," he added.

Other movers and shakers

June's winner Spain had to settle for second place in last month's chart, followed by France and Portugal in third and fourth places respectively. Turkey sneaked into fifth place, followed by Italy and Cyprus at six and seven. Rounding off July's Top of the Props chart was Bulgaria in eighth place, followed by the UAE. Egypt took the final place in the lineup, coming in tenth.

July's Top of the Props chart

Overall Enquiry Volume for July 2009

Rank	Country	Share	Change	Comment
1	USA	14.02	Up 1	1 month in top spot
2	Spain	11.46	Down 1
3	France	9.4	Non-mover
4	Portugal	6.39	Non-mover
5	Turkey	5.69	Up 2
6	Italy	5.12	Down 1
7	Cyprus	2.93	Up 3
8	Bulgaria	2.63	Up 5	New to top 10!
9	UAE	2.51	Down 3
10	Egypt	2.09	Down 1
11	Thailand	1.62	Up 11
12	Greece	1.54	Down 1
13	Malaysia	1.52	Up 7
14	Morocco	1.49	Up 1
15	Germany	1.29	Up 1
16	Brazil	1.27	Down 8
17	Australia	1.27	Down 3
18	Grenada	0.72	Up 15
19	Philippines	0.67	Up 8
20	Canada	0.67	Up 3
21	Croatia	0.65	Down 3
22	Sweden	0.55	Down 3
23	India	0.5	Up 6
24	Hungary	0.5	Up 16
25	Tunisia	0.47	Non-mover
26	Dominican Republic	0.4	Down 2
27	Panama	0.35	Down 10	Biggest faller
28	New Zealand	0.35	Up 10
29	Indonesia	0.32	Up 15
30	Romania	0.32	Down 4
31	South Africa	0.27	Up 17	Highest climber
32	Austria	0.27		Highest New Entry
33	Costa Rica	0.27	Down 3
34	Bahamas	0.25	Non-mover
35	St Lucia	0.22	Up 14
36	Barbados	0.2	Down 5
37	Albania	0.15	Down 5
38	Ireland	0.15		New Entry
39	Poland	0.12	Down 2
40	Montenegro	0.12	Up 5

The ‘Maddie McCann effect'

Catherine Deshayes — 21/05/2009 09:43:00

The ‘Madeleine McCann Effect' is still hitting holiday bookings to Portugal more than two years after the little girl disappeared there...

The number of Britons booking holidays to Portugal this summer has plunged 30 per cent according to one British holiday company.

Asked if the drop in numbers was down to the ‘Maddie Effect', Mr Fontanela-Novoa, Chief Executive of Thomas Cook, agreed, saying that bookings to Portugal had been ‘decimated' - although he added that authorities in Portugal had done all they could and that they understood the tourism situation.

Visitor figures could slide further with the case returning to the news pages, as the McCanns continue in their efforts to find their daughter.

But Mr Fontanela-Novoa is optimistic, saying, ‘Portugal is very much a family destination and I think it will come back.'

Other countries have also been suffering low bookings as a result of the worldwide recession. The number of visitors heading to Spain has dipped by 20 per cent. But Turkey, Egypt and Tunisia are among the countries enjoying a boom in reservations.

Mr Fontanela-Novoa added, ‘Next year is going to be a really tough year - much tougher than this year, particularly because of the expected rise in unemployment.'

Source: www.dailymail.co.uk

Portugal strikes gold in April's Investment Property Watch

Catherine Deshayes — 12/05/2009 09:27:00

Portugal nabbed the top spot on TheMoveChannel.com's Investment Property Watch list for April, which charts the level of interest in certain properties and countries from visitors to the site...

Gold: Portugal

Portugal has no shortage of fans right now. It nabbed second place in our Top of the Props chart and first place in our Investment Property Watch chart for April.

Investors who want a safe bet but don't want to jump on the France or Spain bandwagon often turn to Portugal.

Whilst the country has been hit hard by the global financial crisis, property prices have risen dramatically over the last five years and such is its popularity with tourists, that rental potential should be strong.

As a general rule, properties in the east of Portugal remain slightly cheaper than the west. Affluent areas such as the Golden Triangle of Quinta do Lago, Vale do Lobo and Almancil as well as Estoril and Cascais Riviera and Quinta da Marinha will weather the economic storm better than most.

Other good reasons to invest include the current historically low interest rates and the fact that banks in Portugal are still lending up to 75 to 80 per cent of loan to value for residential properties.

The expansion of Faro airport in the Algarve region could also be good news for property investors. Once the airport is completed in 2013, it will be able to handle eight million passengers each year instead of the six million it currently handles.

The upgrade and expansion is being carried out at a cost of £114 million.

Silver: Dominican Republic

Prices remain low in the Dominican Republic and tourism remains high. Tourist numbers grew by over one million in 2008, and are forecast to grow again, if by less in 2009.

In a bid to attract more luxury buyers, some Caribbean islands are easing restrictions for foreign property investors and introducing incentives to buy.

The British Virgin Islands is to ease some restrictions for foreign real-estate buyers including a new 90 day automatic approval for a landholder license.

The Government is also expanding the airport and providing better mobile phone services and high speed internet access for smart phone users.

As the Caribbean islands rely so heavily on tourism and on foreign investment, it is vital to keep on attracting high numbers each year.

In the Cayman Islands the Government has temporarily lowered rates on real estate transfer taxes including a reduction on waterfront property from 7.5 per cent to five per cent.

The country's real estate brokers group, Cayman Islands Real Estate Brokers Association, has announced a 20 per cent discount on commission that will continue until the end of September this year.

Dan Johnson, Director of TheMoveChannel.com said, "People are increasingly investing in Caribbean property with a view to using it as a holiday rentals.

"The returns from Caribbean real estate investments are good and the prices remain attractive.

"If you do decide to invest in property on an island such as the Dominican Republic or Anguilla, it is advisable to get the property title checked at the Lands and Surveys to ascertain who owns the land and equally important to ensure that there is road access to the property.

"Hire a surveyor who knows the ins and outs of the law of the land and before you make any payments, ensure that you have gone through the Alien Land Holders License," added Mr Johnson.

Other movers and shakers

Egypt took the bronze medal in April's Investment Property Watch chart, followed by Italy in fourth and Turkey in fifth.

The United Arab Emirates came in at number six. Despite being a winner in April's Top of the Props chart, the USA could only scrap into lucky number seven in our Investment Property Watch chart.

Number three Egypt made another appearance in the chart at number eight, followed by Greece and Barbados which took ninth and tenth places respectively, rounding off April's chart.

Table showing April's top investment properties:

Rank	Property	Country	Company
1	New home in Porches - no deposit needed	Portugal	Dream Resorts Ltd
2	The Courtyard	Dom. Rep	Saffron Worldwide Ltd
3	Arabia Boutique 4* Apart-Hotel	Egypt	Key Universal
4	Eucalyptus Beach Village Apartments	Italy	Property Index.com
5	Istanbul Apartments with rental guarantee	Turkey	Castlewood Investment Properties
6	Apartment in Jumeirah Lake Towers	UAE	Most Properties Ltd
7	A principal no risk purchase	USA	Saffron Worldwide Ltd
8	Red Sea beach Resort	Egypt	NoMoreHotels Ltd
9	One bed home in Hilcyon Hills, Samos	Greece	Gascoignes International
10	New home, St Philip - below market value	Barbados	Principal Choice Ltd

*Results are based on number of sales enquiries generated per month.

Picture of Azenhas do Mar in Portugal by Portuguese _eyes

April 2009 Top of the Props: USA today and tomorrow...

Catherine Deshayes — 08/05/2009 09:34:00

Following the same pattern as last month, the USA reigned supreme on the TheMoveChannel.com's April Top of the Props chart. Europe also features strongly in the chart, suggesting that investors are less willing to take risks on far flung destinations and instead want to put their money into tried and tested markets...

Our Top of the Props chart provides a monthly pop chart snapshot of the most popular countries on the site and last month, the USA triumphed, attracting the most interest from visitors to the site.

Take advantage of USA's GO Zone

Now that the United States is entering the lowest point in its property market cycle and people are getting more and more serious about selling off their real estate stock no matter how cheaply, there are more opportunities than ever for investors.

Savvy buyers will be able to snap up a deal at well below market value that could have strong rental potential and, if you go into it with a long term view, could net you a healthy return.

If you are looking for a real bargain, America's GO Zone could still be well worth considering. The Gulf Opportunity (GO) Zone covers the areas affected by Hurricane Katrina - including the states of Mississippi, Alabama and Louisiana - and offers Government incentives for investors to purchase buy-to-let housing stock.

The incentives are for a limited period only and some end this year. As you will be buying property on land subsidised by the US Government, you will be getting excellent value for money.

One such development is Bayside Park in Biloxi, Mississippi, where property prices start from just £68,000. A booming casino industry is driving incredible growth across the entire region with 11 casinos are up and running and several more in the pipeline.

Go Zone Investment Incentives allow you to write off 50 per cent of the property's assessed value in the first year. As an active investor, you can write off the deductions against ordinary income and capital gains, but this may well run out on December 31^st this year.

There is also strong rental demand in the Biloxi area, with a shortage of 64,000 homes so rental potential will be very strong.

Pick up a Portuguese property

Portugal grabbed second place in April's chart. Buying property in Portugal is no longer an exotic pursuit - especially for Brits and Europeans and areas such as the Algarve, the country's southernmost region, have seen an explosion of resorts.

Portugal has been one of the countries most affected by the global economic crisis, according to a report by Cushman & Wakefield, a global real estate solutions company.

Where there is crisis, there is opportunity and bargain hungry buyers have been sniffing around Portugal's tourist hotspots, hoping to snap up a great deal with strong rental potential.

Tourism is likely to remain strong in Portugal long term and thus rental potential looks strong. Development of a solid, upscale tourism sector is part of the Portuguese Government's economic growth strategy.

The sector's GDP contribution is expected to climb from 15.6 per cent in 2009 to 18 per cent by 2019, according to the World Travel and Tourism Council.

Currently, some 975,000 jobs in the country are tourism related. This number is expected to grow to 1,153,000 jobs, accounting for 22.1 per cent of the country's total employment by 2019.

Dan Johnson, Director of TheMoveChannel.com, said "I love Portugal as a lifestyle destination. The beaches are among the finest in Europe and the golf is absolutely first class, with a huge choice of superb courses in a remarkably varied and dramatic landscape, at prices that often undercut Spain significantly.

"The same isn't always true of the property - there are some exceptionally well-heeled developments both on the Algarve and in the Lisbon area, where multi-millionaire status is a must if you want to buy.

"But while the rich enjoy their exclusive lifestyle, in the main the Portuguese economy has been in the doldrums for a number of years and the current forecasts don't exactly paint a picture of rampant growth on the near horizon.

"Areas that don't have such a long pedigree of attracting foreign buyers still have very affordable prices, and with the whole of Europe looking expensive due to the high euro exchange rate, Portugal offers a decent long term investment bet, but more importantly great value for a fabulous lifestyle," he added.

Other movers and shakers

The land of la dolce vita look the bronze medal in Aprils chart, leaving the United Arab Emirates - long the poster child of property booms - trailing in fourth place.

Turkey and Spain took fifth and sixth places respectively, showing that, despite media scaremongering about the pain in Spain, it still proves popular with overseas investors and will likely never fall truly out of favour.

Old favourite France took seventh place, with Egypt yapping at its heels at number eight. Surprise entry Thailand, in a rare appearance in the top ten, took ninth place and Greece rounded off April's Top of the Props chart at number ten.

April's Top of the Props chart

Overall Enquiry Volume for April 2009

Rank	Country	Share	Change	Comment
1	USA	9.3	Non-mover	1 month in top spot
2	Portugal	9.06	Up 5
3	Italy	6.81	Non-mover
4	UAE	5.96	Up 2
5	Turkey	5.02	Non-mover
6	Spain	4.68	Down 4
7	France	4.38	Down 3
8	Egypt	3.95	Up 2
9	Thailand	2.74	Up 5	New to top 10!
10	Greece	2.37	Up 5	New to top 10!
11	Dominican Republic	2.34	Up 7
12	Bulgaria	2.22	Non-mover
13	Canada	1.67	Up 9
14	Cyprus	1.64	Down 3
15	Brazil	1.52	Down 6
16	India	1.12	Up 5
17	Germany	0.91	Down 4
18	Barbados	0.91	Up 8
19	Morocco	0.91	Up 1
20	New Zealand	0.88	Down 3
21	Bahamas	0.73	Up 9
22	Philippines	0.67	Up 16
23	SOS Property	0.58		Highest New Entry
24	Australia	0.55	Down 8
25	Montenegro	0.43	Down 1
26	Croatia	0.36	Up 8
27	St Lucia	0.36	Up 18	Highest climber
28	Sweden	0.36	Down 5
29	South Africa	0.33	Up 10
30	St Kitts and Nevis	0.3		New Entry
31	Costa Rica	0.27	Up 11
32	Cape Verde	0.27	Up 1
33	Poland	0.27	Down 1
34	Romania	0.27	Down 3
35	Malaysia	0.24	Down 10
36	Panama	0.24	Down 7
37		0.24		Highest New Entry
38	Albania	0.24		New Entry
39	Slovakia	0.24	Up 1
40	Sri Lanka	0.24	Down 32	Biggest faller

Picture by pointnshoot

Portugal property: looking good

Catherine Deshayes — 07/05/2009 09:52:00

One look at the hoards of tourists coming through Portugal's international airports and it is hard to believe that there was actually a time when the country was an off the beaten path destination. That time is now clearly over. Buying property in Portugal is no longer an exotic pursuit - especially for Brits and Europeans. Places like the Algarve, the country's southernmost region, have seen an explosion of resorts...

Still property in Portugal remains within reach of many folks who have the extra cash to purchase vacation homes.

"For people that have funds available, Portugal is a very attractive place to invest - especially on the Silver coast - due to the very affordable prices and warm weather," said Celeste Soares, an International Sales Consultant for Imatico Real Estate agency in Sao Martinho do Porto.

About Portugal

Portugal is located on the western coast of Europe and borders Spain in the north and east while the Atlantic Ocean encircles the southern and western part of the country.

Portugal is bestowed with a wide range of landscapes including mountains in the North, a desert-like center, beautiful sandy beaches and rugged coastal landscape.

About 10.6 million people call Portugal home, a majority of which are Roman Catholic. The country's economy is mostly service based but still has some strong industry in software and auto products.

Its current economic model is based on building up the export sector, encouraging private investment, and nurturing the growth of the country's high-tech sector. Portugal is now, for the first time in its history, a net technology exporter, according to the Financial Times. The country is also working on renewable energy sources and is currently among top five European producers of alternative energy technology.

Visitors are charmed by Portugal's old world feel, picturesque villages, cities full of winding cobblestone streets and imposing cathedrals.

Those who come looking for a rich gastronomical experience will not be disappointed by the country's delicious Mediterranean cuisine. Much like its neighbor Spain, the Portuguese lifestyle is an infectiously laid-back one that gives visitors a sense of getting away from it all.

Development of a solid, upscale tourism sector is part of the Portuguese government's economic growth strategy. The sector's GDP contribution is expected to climb from 15.6 per cent in 2009 to 18 per cent by 2019, according to the World Travel and Tourism Council. Currently, some 975,000 jobs in the country are tourism related. This number is expected to grow to 1,153,000 jobs, accounting for 22.1 per cent of the country's total employment by 2019.

Current predictions for the sector's real GDP growth look grim at -1.4 per cent but the rate is expected to increase to an average annual growth of 3.6 per cent over the next ten years.

Real estate in Portugal

Just like most other countries, the Portuguese economy is affected by the global economic slowdown. The country's property market was one of the first sectors to feel the pinch from the crisis and is the most hurt by it according to a report by Cushman & Wakefield, a global real estate solutions company.

The retail market is suffering from oversupply with demand dwindling as cautious retailers adopt a wait and see attitude towards expansion. The office sector and the industrial market haven't escaped the effects of the recession either.

As the tourism sector begins to take a deeper hit, the hotel sector is starting to be seriously affected by the economic crisis.

The residential market has also seen better days. In addition to weak economic conditions and the credit crunch, rising interest rates have curbed demand.

The number of international buyers in the sector has also fallen a bit. "The current state of the real estate market in Portugal is a little slower due to the pound's decline against the Euro. Our English and Irish clientele is slightly less in numbers, however our Dutch, Belgium and Swiss market are doing well," said Soares.

Buying property in Portugal

There are no restrictions on who owns property in Portugal and the process is quite simple. International buyers need to have a verifiable identification such as a passport, according to Soares.

They also need to apply for a "fiscal card" for tax purposes. Buyers should have a bank account in Portugal and they must be able to put down at least 30 per cent of the property value. "A lawyer is also needed," said Soares. Lawyers usually write the contracts and research titles, and ensure all paperwork such as tax registration is done.

Foreign buyers should be aware that sometimes the purchasing process can take longer than anticipated, according to Soares. "This is especially the case when purchasing off plan properties," she said. Another issue to think about is language.

"Purchasing properties in areas that are too isolated can be difficult due to language barriers," she added. She also points out that when buying property internationally, it is crucial to use a reputable and reliable agent that has handled similar transactions before.

Looking ahead

Portugal is considered to be a sought-out location for overseas investors, according to My Portugal Property, a real estate website focusing on the country.

Rental properties in popular resort areas are reasonably good and the medium to long term prospects of the property sector look solid.

Once the effects of the current economic slowdown wears off, the country's property sector is expected to bounce back. As far as international demand is concerned, Soares anticipates expansion in some markets. "I expect that the Scandinavian and the Russian market to grow," she said.

Written by Yemisrach Kifle for www.nuwireinvestor.com

Picture by dan taylor

Celebrity neighbours

Catherine Deshayes — 20/03/2009 09:41:00

Ever wanted to move abroad but don't know who you'll end up living near to? Britain's favourite celebrities are among the hundreds of thousands of Brits now owning properties overseas...

Spain
Why buy? Economic downturn or not, Spain still offers sun, sea and accessibility, making it our number one second-home and retirement destination. If you want to buy now, and are looking for quality, then you should be able to negotiate at least 20 per cent off last year's prices for both new and resale.

Who's here too? Former England football manager Terry Venables, PR guru Max Clifford, chef Antony Worrall Thompson, composer Andrew Lloyd Webber, former cricketer Ian Botham, singer Annie Lennox, actor Catherine Zeta-Jones, Olympic athlete Daley Thompson

France
Why buy? France has plenty going for it. It has a good supply of character properties and fantastic food and drink, plus it's easy to get to. The country's size means there's a huge variety of properties available. You can get away from it all in a tumbledown cottage in a beautiful rural location, or rub shoulders with the chic while living in a pied-a-terre in Paris.

Who's here too? Brand Beckham David and Victoria, singer Elton John, national treasure Terry Wogan, singer Toyah Willcox, footballer Steven Gerrard, opera singer Lesley Garrett

Portugal
Why buy? Similar in size to Scotland, Portugal is greener and more rugged than Spain. Only a short flight from the UK, it boasts golf courses galore, fabulous beaches and reliably sunny weather. But while Portugal may be feeling the effects of the downturn, the country is unlikely to see the large price drops that some of its neighbours are experiencing, resulting in relative stability in the housing market.

Who's here too? Former England goalie David Seaman, actor Clive Dunn, singer Cliff Richard, presenter Judith Chalmers, footballers Michael Owen and Alan Shearer, ex-Liverpool forward John Aldridge, former England defender Tony Dorigo, ex-Goodie Tim Brooke-Taylor, presenter Chris Evans, golfer Padraig Harrington

Cyprus
Why buy? Year-round sunshine is Cyprus' biggest asset. This complements the island's friendly people, beautiful coastline, British legacy and favourable tax regime - little wonder a growing number of British emigrants and retirees are buying and moving there.
Who's here too? Celeb couple Jordan and Peter Andre, former Liverpool and Wales international footballer Ian Rush

Turkey
Why buy? Turkey has emerged as a popular holiday home destination thanks to being able to offer very affordable property close to beautiful beaches.
Who's here too? Premiership footballers Andrew Johnson and Tim Cahill, golfer Lee Westwood, actor Ricky Tomlinson, boxers Joe Calzaghe and Ricky Hatton, athlete Sally Gunnell, actor Claire Sweeney, athlete Jason Gardener

Greece
Why buy? One of Europe's most popular holiday hotspots, Greece and the Greek islands perhaps aren't quite the bargain break they used to be in the days of the drachma, but the pretty white-washed houses, clear seas and warm climate appeal to everyone.
Who's here too? Private Eye editor and Have I Got News for You panelist Ian Hislop

Italy
Why buy? A destination favoured by Brits for its dolce vita lifestyle, culture and food. Traditionally we've bought rustic gems in the hills, often for restoring, but we're now waking up to its affordable seaside properties and village houses.
Who's here too? Singers Sting and Mick Hucknall, A Place in the Sun presenter Amanda Lamb, Dame Helen Mirren

USA
Why buy? The third largest nation in the world, America offers fast city life in New York and LA, casinos and bright lights in Las Vegas, and glorious sunshine in Florida. Evidence suggests the economic climate hasn't dampened our desire for property in the US, and given the state of the market, many Brits are on the lookout for a bargain.
Who's here too? Music svengali Simon Cowell, singer Rod Stewart, singer Daniel O'Donnell, actor Catherine Zeta-Jones

Australia
Why buy? It's English-speaking, has beautiful beaches complemented by a glorious sunny climate, isn't over-populated, has world-class healthcare and is crying out for professionals/trades people. With the largest population of British expats in the world (around 1.3 million), Australia remains the UK's number one emigration destination.
Who's here too? Singer & actor Kylie Minogue (OK, she's not British, but she's practically one of us), actor Cate Blanchett (well she played Elizabeth I didn't she?)

Canada
Why buy? With a laid-back atmosphere and dramatic landscapes, it's little wonder that Canada is such a popular destination. Expats flock there in search of a healthy lifestyle and breathtaking natural beauty, while for holiday homes, the buzz phrase is ‘four season appeal': if you want skiing, hot summers, white-water rafting, golf, salmon fishing and lakeside living - come to Canada.
Who's here too? Singer Midge Ure

From 3rd-5th April 2009, the A Place in the Sun Live exhibition at Earls Court 2 London promises an all-encompassing look at how to get onto the overseas property ladder. Visitors looking for a great investment, idyllic holiday home, retirement property, or a permanent home abroad will find thousands of great properties and advice from experts they can trust

Source: A Place in the Sun

What's on in the Algarve?

Catherine Deshayes — 19/03/2009 08:30:00

There are lots of events planned in this region of Portugal in 2009, which is great news for property investors...

Whether you want a short break, honeymoon, adventure trip, beach holiday, cultural tour, sporting event or historical visit, the Algarve will offer something for everyone this year with a packed calendar of events.

From May 4^th to 9th the Algarve International Film Festival in Portimão will showcase short films from international filmmakers. In 2009 the festival will focus on 'Cinema and Globalisation in the World' and hopes to attract a broad mix of multicultural films. For more details see www.algarvefilmfest.com

For five days in July colour and excitement will fill the streets of Loulé again as the Med Festival takes place. World music originating from Morocco and various southern European countries, such as Spain, Italy, Greece and Portugal will fill the air.

Visitors will also enjoy handicraft exhibitions, dance performances and street theatre. For more information go to www.festivalmed.com.pt

A paradise for seafood lovers, the annual Festival do Marisco, is held in August each year in the town of Olhão, just five kilometres from Faro.

One of the most important gastronomic events in the Algarve calendar, the Festival do Marisco offers visitors the chance to sample some of the local delicacies. A wide range of seafood is available, ranging from grilled sardines to fried shrimps and of course the traditional cataplana, a much loved Portuguese dish consisting of clams, mussels, bacon, chouriço, garlic, onions and olive oil.

Music and folk dancing accompany the festival, with performers encouraging both locals and visitors to eat, drink and enjoy the superb atmosphere. For details visit www.festivaldomarisco.com

At the end of August, Castro Marim and Silves return to the Middle Ages, in a highly rigorous historical recreation. During four days and nights, the castle of Castro Marim plays host to kings and queens, knights in shining armour, jesters, noblemen and ladies. Jousting tournaments, on foot and on horseback, street theatre performances, banquets accompanied by medieval music and a handicraft and merchandise fair, complement the entertainment during these Medieval Days, which enable visitors to relive the magic and mystery of times gone by. See www.cm-castromarim.pt for further information.

The Algarve will also host some world class sporting events during 2009. The new Autódromo Internacional Algarve track in Portimão covers 300 hectares of land between Portimão and the hills of Monchique, with a capacity for up to 100,000 spectators. Key racing events are already confirmed in 2009 including the A1GP World Cop of Motorport on April 12th where UK visitors can cheer on the British team; the Historic Formula One Championship on May 10th; FIA GT Championship on September 13th; GP2 Series on October 4th and for the second year running the SBK Superbike World Championship on October 25th. The motorpark complex also includes a five-star hotel, apartments and restaurants. See www.autodromodoalgarve.com for full details.

Visitors can witness the great skill and expertise of the world's top drivers racing along the roads and tracks of the Algarve from April 2-5, competing in the Portugal Rally. The route combines fast open stretches with some technical and challenging tracks. Situated only eight kilometers from Faro International Airport, the Algarve Stadium will be the setting for the event's closing ceremony, while also acting as the rally's operational centre. See www.rallydeportugal.pt

Prepare to be blown away by the spectacular moves of the world's finest kite surfers at the Kitesurf World Championship in Portimão in July. This exciting new sport attracts many young people and during the event Portimão will come alive with nightly entertainment. See www.kiteportimao.info

July is the month for speed as Portimão hosts the final stage in the Powerboat P1 World Championship from 3th-5th. Powerful single-hull vessels will slice through the water at speeds in excess of 160 kmph offering plenty of excitement for fans and visitors to the region. As this is the last leg of six, the region will come alive with a party atmosphere in line with other Grand Prix events. For details see www.powerboatp1.com

October is the month for golf with the world's greatest golfers travelling to Vilamoura to take part in the Portugal Masters. Considered to be one of the leading golf events, the Masters is to hold its second edition in Portugal from October 15th-18th, 2009. It will take place at the Victoria Golf Club. The course was designed by the famous player, Arnold Palmer and the design alternates between well-positioned bunkers with lakes and waterfalls and is a continuous challenge for players.

Whether you are looking to soak up the sun and enjoy the crystal clear waters and golden sands of the coast, delve into the history and culture of the region's beautiful towns and or just relax in the lush green countryside, the Algarve has plenty to offer.

For full details of events in the Algarve this year see www.allgarve.pt

Source: Homes Worldwide

Portugal goes green

Catherine Deshayes — 19/03/2009 08:16:00

Portugal has long been renowned for its year-round warm climate including over 300 days of sunshine and its endless Atlantic coastline, two elements that have made it a firm favourite for overseas property investment. However, these elements are now being harnessed in a major drive to boost Portugal's economy...

Areas such as the Algarve and Silver Coast (running from Lisbon to the city of Aveiro) are well-established on the Portugal property investment map and development and associated tourism in these regions has done much to drive the local economies forward.

Portugal remains one of western Europe's poorest countries and with no primary resources of its own and highly reliant on external energy sources, Portugal's economy has failed to take off. Conscious of the country's poverty, the Socialist Government has decided to harness Portugal's natural energy sources to bring much needed wealth to the economy.

The national New Energy Policy was approved in 2005 and the Minister of Economy and main instigator of the policy, Manuel Pinho, believes it will provide Portugal with the opportunity to prove that it is good at something. "Not using Portugal's vast natural resources for energy would be like Venezuela not using its oil," he claims.

The policy has the ambitious objective to make Portugal a world leader in renewable energy. To achieve this, its main aims are for 60 per cent of Portugal's electricity and 31 per cent of its energy needs to be supplied by renewable energy sources by 2020.

There are also advanced plans for a national network for electric cars. Four years after the policy's implementation, Portugal is already proving it means business - by 2010, the country will have the lowest CO2 emissions per capita in the EU and several renewable energy installations are record breakers.

For example, the 120 wind turbines turning in the Alto Minho region in the north form the largest onshore windfarm in Europe, Amaraleja in the south is home to the world's largest photovoltaic solar energy plant and innovative wave farms are already installed off the Porto coast.

The push for renewable energy has brought triple benefits to Portugal - not only is the country contributing significantly to the fight against global warming, Portugal is gradually reducing its expensive dependence on external energy and the country's economy has received an uplift. Employment figures have been boosted by 10,000 new jobs created since 2005 and a further 22,000 more are expected to be generated by 2020.

James Gonzalez, Market Analyst at Obelisk Investment Property, believes the renewable energy policy will bring Portugal to the forefront of Europe.

"This is perhaps the break Portugal has been waiting for," he says, "and if the objectives are met, renewable energy and related R&D should make a substantial contribution to the economy. I think we can expect to see a major change in Portugal's investment profile over the next few years."

Source: Obelisk International

Portugal airport boost

Jaimie Kanwar — 24/02/2009 09:58:00

Faro airport, situated in Portugal's ever-popular Algarve region, is to undergo a major expansion, which could be good news for property investors...

The expansion will see its capacity increase from six million passengers a year to eight million by 2013, at a cost of around €130m (£114m).

Faro airport authorities report that the work will enable the airport to increase the number of flights possible per hour from the current 22 to 30.

Rising demand

The news could spur the Algarve property market, as increased tourism figures is likely to lead to a rise in demand for property in Algarve to buy and rent.

"This project is part of a team effort between us, the national and regional tourism boards," says Guilhermino Rodrigues, the president of airport management company, Ana Aeroportos. "It is part of our mission to improve the Algarve as a destination, reducing seasonality and diversifying the market."

Construction work, which is due to get underway next month, will be divided into two phases, with completion earmarked for the tail end of 2013.

Source: /www.homesoverseas.co.uk

Portugal sets new tourism record

Jaimie Kanwar — 20/02/2009 12:07:00

New government figures have revealed that Portugal's tourism income hit a record high of 7.5 billion Euros ($9.45 billion) in 2008...

This figure was achieved in spite of the economic crisis that started in the second half of the year, the economy ministry said today.

The revenues, which rose 1.7 percent from 2007, included both foreign and domestic tourists. It showed that while Britons cut their trips to Portugal last year due to economic hardship, visits by Brazilians, French and Dutch rose.

Expenditure by Spanish visitors to Portugal also rose, with revenues rising by 9.2 million Euros to 1.092 billion Euros last year as more tourists came across the border.

Tourism is a key economic sector for Portugal and is slightly cheaper than Spain, something that could make it more attractive as northern Europeans seek budget trips during the economic crisis.

Source: www.reuters.co.uk

Portugal: A sure thing?

Jaimie Kanwar — 12/02/2009 11:58:00

The property market in Portugal continues to grow, making the country a potential European investment hotspot...

That's according to the developer Pine Cliffs, which is so confident of the market's potential that it has guaranteed a return of 15 per cent within the first three years on purchases at its own resort in the Algarve.

The developer states that the country's economy is in a period of "steady and sustainable growth", reducing the risks associated with investment.

Property editor of buyassociation.co.uk, Paul Collins, concurred: "Portugal remains one of the most popular destinations for UK overseas buyers, and with good reason."

He outlined the benefits of the Iberian country, such as its proximity to the UK, a strong financial and legal framework, and its exclusion from the "over-development" which hit Spain.

Source: www.buyassociation.co.uk