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 18^th 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

<< Previous Article

Within Algarve
Within Portugal

NextArticle >>

Within Algarve
Within Portugal

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.

See all properties in Algarve

Price: €98,000

Type: Apartment

Bedrooms: 2

View details | Enquire further

See all properties in Algarve

featured properties

Modern Trullo, Puglia

Prices from: €250,000

Beds: 2 Baths: 2 - 1 ensuite

Kitchen + appliances, dining-room, sitting-room, garden front & back. Plans may be modified to suit your requirements.

Apartments: Sao Martinho do Porto

Price: £125,600

Bedrooms: 3 Baths: 2 - 1 ensuite

Kitchens with cupboards, hob/oven, fridge/freezer, washing machine, dishwasher. Pool, gardens, tennis courts.

Stone Casolare, Puglia

Price: €230,000

Bedrooms: 2 Bathrooms 2

Contrada Ulmo, between Martina Franca & Ceglie Messapica. Restored. 1 ha land: DOC vinyard, olive/almond trees.

Apartments: Vinohrady, Prague

Price: £130,000

Bedrooms: 1

3% discount off list price.
prices approx 10% below market value.,
Prague market growing at 20% pa.

Borovets Ski Chalets

Price: €185,000

Bedrooms: 4, 2 ensuite showers

Private sauna, garden, terrace. Metres from Super Borovets ski gondola & golf course. Surrounded by pine forests.

Golf Property in France

Prices from: €232,000

Bedrooms: 2, 3 & 4

Apartments & townhouses on Severiano Ballesteros designed Pont Royal Golf Course between Aix-en-Provence & Avignon.