Investment drive for property in Madeira
Country: Portugal
The Portuguese archipelago of Madeira, located in the Atlantic Ocean, is starting to shake off its blue-rinse brigade reputation and attracting more contemporary tourists and property investors, buoyed by the growing number of budget airlines flying to Madeira and the greater level of investment being injected into the island. Thanks to the appealing climate and increasing range of year-round outdoor activities, Madeira, situated just three and a half hours flying time from the UK, has long attracted foreign interest from both tourists and holiday homeowners. The long coastline provides a range of water sports including surfing, fishing, sailing, dolphin spotting and snorkeling, while levadas for walking explorations of the islands flora and fauna and mountain biking are other popular past times in Madeira. However, it is the introduction of new golf courses in Madeira to compliment the championship Santo da Serra golf course, which is acting as the greatest catalyst for attracting high net worth individuals and boosting local infrastructure facilities. This makes Madeira “a potentially good property investment destination”, says Michael Nascimento director of property investment firm, Morgan Forbes. Having recognised a niche in the Madeira property market, Morgan Forbes will soon start construction work on a new five-star apart-hotel development, Ponto do Pargo Resort, located in the Porto do Pargo region of the island. The new scheme, which has already received planning consent, will be situated adjacent to a new Sir Nick Faldo designed 27-hole PGA standard golf course, and will feature 68 apart-hotel units. Commenting on his website, the newly knighted Sir Nick Faldo said: “The enduring feature of our project at Ponta do Pargo is the sheer dramatic nature of the site. The routing that we are currently developing makes full use of the cliff-tops of a broad headland that juts out into the clear waters of the Atlantic Ocean below; it is absolutely stunning.” Nascimento firmly believes that property values in the Ponta do Pargo region will boom over the next few years, on the back of the decision to give the new golf scheme the go-ahead, and shrewd property investors have already started to take note. The project has already attracted a high level of investor interest thanks to the strong investment returns potentially on offer, with around 20% of the scheme already sold, despite the fact that construction work on the project has not yet got underway. Property investors can buy an equity stake in Ponta do Pargo for a deposit of as little as £5,750, with a total investment of £15,620 for 13th share in an apart-hotel unit. Nascimento reports that based on an average occupancy rate of 64% in the local area, the Ponta do Pargo Resort project is expected to yield a pretty impressive annual rental return of close to 11%. In addition to the high yearly income, the scheme offers excellent prospects for future capital growth. Furthermore, all investors will receive a 0.1% share of any future sale of the resort, which has already been valued at £37 million. That is an impressive £37,000 per investor. Not a bad return on a total investment of just £15,620! The new Ponta do Pargo Resort and nearby golf resort should compliment the already established Palheiro Estate development, located on the outskirts of the capital city of Funchal. The award winning Palheiro Estate, owned by the Blandy family since 1885, comprises the five-star Casa Velha do Palheiro country house hotel, a Cabell Robinson 18-hole golf course and Palheiro Village, a development of luxury apartments and villas. The development has taken residential architecture on the island to a new level, and now stands to rival some of the best golf property developments in the more established golfing hotspot of the Algarve, at a fraction of the price. Property prices in Palheiro range from £217,000 for a one-bedroom apartment to £1.12 million for a four-bedroom villa. Additionally, Palheiro Village has plots available on the estate, starting at £200,000 for 2,000 square metres. Given that Madeira offers the perfect year round climate for avid golf enthusiasts, which often includes the wealthy, the sport should act a great means of boosting residential property values on the island over the next few years. Discerning investors should take note of the fact that Madeira offers a stable economy, low property price vulnerability, and a buoyant tourism market. The prospects for the Madeira property market moving forward look positive.
There's also a range of articles for you to read about buying property in Portugal:
As well as our overseas news stories affecting the property market in Portugal .
Or view our range of property for sale in Portugal.
See Also: Golf, Madeira, Marc Da-Silva, Morgan Forbes, Palheiro Estate, Portugal, Property invesment news
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
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