There’s Rarely Been a Better Time to Buy Algarve Property
Country: Algarve; Portugal
It’s the sort of place you would expect to find people for whom the credit crunch is no more than a mild annoyance. That said, many of the top Algarve property developers are pulling out all the stops to maintain sales from those all-important British buyers, either by adjusting their prices (downwards, obviously), or through some unusual and imaginative sales and marketing schemes. A number of independent property agents are also offering resort properties discounted by up to 30 per cent, and they’re teasing buyers further with 100 per cent mortgage offers with no deposit. In some markets, you could imagine this sort of discounting deterring buyers, giving them the impression that property is moving into freefall; this is unlikely to be the case in Algarve, with its perennially strong holiday rental market. The truth is, if you’re not feeling the pinch yourself – and short-term capital growth is not a priority – there’s rarely been a better time to buy here. And whereas the central Algarve once boasted more than its fair share of award-winning developments, now there are strong contenders for gongs the length and breadth of the region. For example, in the western Algarve, an hour from the international airport at Faro and just 15 minutes from the historic port town of Lagos, lies Parque da Floresta. Apart from a high standard of varied property, the resort boasts a beautiful and testing golf course, indoor and outdoor heated pools, kids’ clubs, quality restaurants and bars and a sizeable health spa and gym. The development is currently offering luxury villas and village houses, with prices for two-bedroom village houses starting from €397,000 (£340,000). The developer of Parque da Floresta, Vigia, has also been one of the pioneers in Europe of fractional ownership, and many options for shared ownership of property are available. Alternatively, Parque da Floresta is now offering reduced-price rental packages for three months, enabling prospective buyers to try before they buy. And, better still, if you buy you get your rental costs back. Ewa Petersson of Vigia believes the try-before-you-buy option will appeal to those British buyers now more wary than ever of jumping into a major financial commitment. She says: “Parque da Floresta has loads of facilities for all age groups to enjoy and we feel that once you have stayed in a property here, or at any of our other resorts, you’ll definitely want to buy your own home in the sun.” Just five minutes from the resort itself, Vigia has also created a small community of 55 two- and three-bedroom village houses in a clifftop location, overlooking the fishing village of Salema and the sea beyond. Owners here will benefit from all the facilities of Parque da Floresta and prices start from €450,000 (£385,000). Nearby, Alma Verde is a multi-award-winning eco-friendly development, situated on the edge of the Costa Vicentina Natural Park and comprising villas, townhouses and apartments. This extremely low-density development – with just ten per cent of available land being developed – is set on the site of a rustic farm and its elevated position affords excellent views of the surrounding countryside, while the beach is a mere three-minute drive away. John Tranmer of Alma Verde is confident that the sustainable ethos of his development will help maintain a solid level of sales. He says: “Fortunately, we are still attracting prospective buyers who recognize the unique nature and high quality of our product.” That said, Tranmer is pragmatic about the problems he and other property companies face in the coming months, saying: “Overall, the outlook remains difficult for the next 12 to 18 months. Developers are delaying construction projects that were in the pipeline, and looking to trim overheads. The only developments selling will be those that offer superior quality and value for money.” Villas at Alma Verde have either three or four bedrooms, with three-bedroom versions, with a private pool, currently available from €474,000 (£405,000). Moving east to the central Algarve, into the so-called golden triangle, we enter the heartland of one of the region’s most successful developers, Oceânico. Nikki Loker, Oceânico Group’s sales and marketing director, says: “We are still seeing a lot of interest in Portugal. The key seems to be in Portugal’s appeal to British investors – there is a strong relationship between the two countries and the economy in Portugal is more stable than in many other parts of Europe. It also has a long history in the property market, a strong rental market, and offers many of the activities and the climate that British investors find so appealing.” One of the company’s headline developments here is the low-density Amendoeira resort, which includes two world-class golf courses, one designed by Nick Faldo, the other by Christy O’Connor Jnr. The courses and the equally magnificent clubhouse form the heart of this five-star resort, along with the huge Amendoeira Hotel and Spa. In terms of property in Amendoeira, the residential complex will offer two- and three-bedroom apartments as well as three-, four- and five-bedroom villas, all with Moorish-influenced architecture. Larger villas will have their own pools and most properties will have excellent golf course views. One of the big attractions of Amendoeira is that, apart from the resort’s own two superb golf courses, owners will automatically become members of five more quality courses within the Oceânico-owned Vilamoura resort. Another tempting fact is that Oceanico offers buyers access to the Overseas Exchange Bond, which can replace up to 20 per cent of the cash deposit or stage payments on a property purchase. At Vilamoura, Oceânico is now developing the Vilamoura Golf & Garden Resort, where one of the first big-name buyers is golfing superstar Padraig Harrington. He may have bought one of the luxury two- or three-bedroom apartments, or even a semi-detached villa, but it seems more likely that the twice-Open champion will have put his deposit down on a four- or five-bedroom villa. Incidentally, the resort will certainly be hoping to pick up a landscape design award or two over the coming years, as celebrity garden designer Diarmuid Gavin has been recruited to ensure every buyer has a view to die for from their bedroom window. The first phase of the development is due for completion in 2010, with prices starting from €515,000 (£440,000), and all Oceânico properties offer buyers the opportunity to purchase through their acclaimed Stepping Stones fractional ownership scheme. Also within the Golden Triangle is one of the old masters of European property development, Vale do Lobo, a sprawling 400-hectare resort that has been growing and setting standards in luxury property for over 40 years. Apart from a constant flow of quality resale villas and apartments at the resort, the latest offering from Vale do Lobo is Vale de Santo António, a gated community of apartments, townhouses and villas, boasting Mediterranean architecture and a prime location, close to the resort’s tennis academy. Residents within Vale de Santo António will benefit from an exclusive clubhouse and two pools, as well as having access to the many quality facilities of Vale do Lobo, such as the world-class Royal and Ocean golf courses, a luxury spa and numerous restaurants and bars. Prices for apartments within the new development start at €854,000 (£730,000). Moving to the far east of the Algarve, the Monte Rei development lies amid lush and undulating terrain close to the town of Tavira– with its mix of beautiful traditional architecture and stylish shops and eateries – and just a few miles from the Spanish border. In fact, the beautiful and historic city of Seville is just an hour’s drive away. Monte Rei is currently operating an impressive Jack Nicklaus-designed golf course (with another on the way), complete with a luxurious clubhouse offering a range of facilities including fine-dining. Once complete, Monte Rei will incorporate a retail area, tennis facilities, an equestrian centre, an extensive spa and a separate 6.5-hectare oceanfront beach club. Monte Rei recently released a new phase of development, the vista Real Luxury Apartments, set on a hillside overlooking the 18th hole of the first Nicklaus course, and incorporating state-of-the-art kitchens and designer bathrooms. Prices for the apartments starts at €990,000 (£847,000). Mario Condeço of Monte Rei, demonstrates his confidence in the pulling power of the resort when he says: “We have not been affected much by the credit crunch as most of our clients use their own funds to purchase their properties.” Enough said. And he continues: “Monte Rei offers a unique location with a very low density of first-class properties [only eight per cent of the available land will be developed] surrounded by two world-class Jack Nicklaus Signature golf courses, a future five-star hotel and a beach club.” As you can see, even in the midst of a global economic downturn, confidence is running high with quality developers, a fact that should instill confidence in prospective purchasers of Algarve property. And confidence is not without basis; Ryanair, for example, recently announced new flights to Algarve from routes all over the UK – a recognition of the importance of this destination as a winter as well as summer holiday hotspot of choice for Brits who still have the spending power to change the face of a property market. First published in March 2009.
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.
Mike Hayes
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.
Some properties in Portugal
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Price: €20,000
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Type: House
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Bedrooms: 4
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This Property has been restored to the highest standard and retains many of its original rustic features; its located in a very clean and up-market area of Central Portugal.
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Price: £17,914
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Type: Apartment
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Bedrooms: 1
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This Avant-garde hotel occupies a priveleged position at the top of panoramic cliffs overlooking the Atlantic Ocean and the 18th hole of the Sir Nick Faldo designed gold course as well as the clubhouse.
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Price: £17,914
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Type: Apartments
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Bedrooms: 1
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The avant-garde hotel occupies a privileged position at the top of panoramic cliffs overlooking both the Atlantic Ocean and the 18th hole of the Sir Nick Faldo designed golf course as well as the clubhouse.
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Price: €35,000
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Type: Detached House
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Bedrooms: 2
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A detached house in need of modernizing set in a village location in Central Portugal.
It’s within a 10 minute drive to the town of Mortagua with all facilities including a railway link to Coimbra, Lisbon and Porto.
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Price: €35,000
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Type: Land
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A very nice area of land south facing with wide open views across the open countryside. It’s set in a very quiet position on the edge of a popular village and area.
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Price: €39,000
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Type: Land
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The main attraction with this property is its location, the views are outstanding.
The majority of the building will need to be reconstructed but with the potential of its position it would make a lovely home in Central Portugal.220
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Price: €35,000
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Type: House
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Bedrooms: 3
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Nice quiet position for this detached house.
It’s in need of restoration – all structurally sound but in need of internal divisions to be replaced.<
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Price: €43,500
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Type: Land
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Set in the heart of the forest this property has an outstanding position.
At the head of a valley it has unspoiled views which can only be appreciated when you see them.
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Price: €45,000
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Type: House
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Bedrooms: 3
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Rustic house to restore in a village setting with views of the river and barrage.
It has recently had a new roof and is structurally sound but does require internal restoration.
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Price: €45,000
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Type: House
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Bedrooms: 3
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This restoration project is just on the edge of a small village, in a peaceful setting, not far from a thriving working town.
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