“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 is recorded at 7.6% during the third quarter of this year when compared to the same period in 2020. The rate of the market return in Lisbon, Porto and Algarve has surpassed all expectations 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 surge in property prices but there is currently no evidence of a slowdown – not even as we enter the month of November. With the ability to secure residency via the Golden Visa scheme, coming to an end on 31st December 202, there has been a race to purchase property in these sought-after coastal regions.
This year, 2021, has been a year of extremes. In January the future felt bleak as we 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?
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 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. With caution still uppermost in everyone’s mind, the benefits are now being reaped as shops, restaurants and bars have reopened their doors. The ‘new’ normal seems to be working very well.
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 close 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. If the country continues its careful transition from Covid-19, the future is dynamic and bright.