“Positive thoughts lead to positive results.” Maria V. Snyder
In concurrence with this pertinent statement, the residential property market in the Algarve has bounced back following the Covid-19 crisis and flourishes in tandem with tourism proving that the region remains a popular destination. Such is the confidence and positivity of builders and developers that they are pressing ahead with ambitious programmes of new homes.
The recent rise in property prices has been phenomenal and in the first 3 months of 2022 rose 17.5% compared to the same period last year. The rate of the market return in Lisbon, Porto and Algarve has surpassed all expectation and currently there seems no end to the appetite of foreign settlers and investors for a life in Portugal.
Questions may be raised about the sustainability of the present rise in property prices but there is currently no evidence of a slowdown. With residency via the Golden Visa scheme having come to an end on 31st December 2021, there was a race to purchase property in these sought-after coastal regions. Nearly a year on and despite this change, desirable properties are still selling.
Last year, 2021, was a year of extremes. In January the future felt bleak as the country faced uncertainty, further restrictions affecting personal freedom and lockdowns due to the pandemic. The future of tourism in Portugal was at a low ebb and the property market an unknown entity – would tourism ever recover, and would property prices crash? Had the world lost confidence in investment and travel? No one could have foreseen how dramatic the change would be.
As lockdowns started to ease across Europe, UK and further flung countries, a revolution unfolded as visitors returned with a new energy and appetite for travel or to purchase a home in the sun. Covid had forced many to examine their life choices and to reconsider their options. The flood gates opened during July 2021 and the visitors arrived in droves, be it to enjoy a much-needed holiday or to look for a property investment and a new life in a politically safe and temperate land.
For many the choice of destination was and is Portugal with Algarve remaining a prime choice as verified by many surveys. It is widely recognised, throughout the world, that Portugal handled the advent of Covid-19 with skill and good judgement. At the outset, the Portuguese nation followed government instruction to isolate and to adhere to social distancing and this has paid dividends in their recovery programme.
There is currently a lack of new and resale property on the market. Demand is huge as enquiries to real estate agencies have gained great impetus. The Algarve benefits from the second highest GDP in Portugal and the second highest property values per square metre after Lisbon. Property in close proximity to some of the world’s best beaches and golf courses is at a premium.
Clients internationally have recognised the benefits of living or investing in Portugal and their appetite to profit from these advantages continue to grow. How many countries can boast such a temperate climate, a low cost of living, tax incentives, a laid-back pace of life, an indigenous nation with the warmest of welcomes, bounteous gastronomy from the sea and land, ease of international access via roads and airports, and above all, an enviable reputation for national security that has protected against terrorist attacks?
Portugal has most definitely been the beneficiary of an ethos where positive thoughts have led to positive results. The future is dynamic and bright.
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