In December 2003 we bought our home in Caramujeira, close to Carvoeiro on Portugal’s Algarve, planning for a change in lifestyle far away from the hustle and bustle of Ireland and the pace and stresses of life associated with the ‘celtic tiger’ years.
By Mary Mangan
As we enter December 2011, some eight years later, and we reflect on the changes in our lives and those wrought by the recent years of ‘the crisis’ it’s striking that despite the gloom and doom in the media generally we still feel optimistic about our future in Portugal and about the value of our real estate investments.
As in every European country property tends to be a major talking point here in Portugal where the market has slowed somewhat from the dizzying heights of 2005/6.
However despite the slowdown there are still lots of positives around with most real estate agents reporting steady sales over the past few months.
It’s a fact that in markets where the focus has been on delivering what the clients want to a high quality standard, the value of property has not deteriorated in the same way as in some of the newer destinations.
Portugal has lots to offer whether you are purchasing a holiday property or as in our case a permanent home and relocating for a lifestyle change.
The investments of the past few years in the development of the tourism infrastructure in Portugal including award winning golf course resorts, marinas, blue flag beaches, and shopping centres, combined with our wonderful climate have resulted in Portugal becoming one of the most popular holiday destinations in Europe.
However, what many holidaymakers do not think about are the other facilities that make the country so popular.
There is an excellent educational system both public and private with International schools in most of the most popular locations turning out students with a high level of academic qualifications each year who go on to pursue their ambitions locally or abroad. My daughter studied for her ‘A’ levels at the International School at Porches and is now pursuing her degree course in the UK.
Our health infrastructure again with both public and private components can be positively compared with any European country and gives peace of mind particularly to permanent overseas residents.
The number of flights into Portugal from overseas destinations has increased considerably over the period since we have lived here and recent figures released from the Portuguese Tourism board showed an increase of 3.5% in the number of people staying here in August 2011 in comparison to August 2010, which is a very positive trend in a difficult economic environment.
However, one of the most attractive features of living here is the result of all of the above and more – the lifestyle. There are few traffic jams. Generally speaking properties are located in peaceful tranquil locations with little in the way of loud noise or disturbance.
We have restaurants that can be enjoyed from as little as €7.50 for a ‘prato do dia’ lunch per person to Michelin-starred restaurants where the finest cuisine can be appreciated. There are many cultural events and festivals to be appreciated and enjoyed throughout the year and the outdoor living experienced here is second to none.
In the past few months clients looking for a permanent home have been featuring more and more on our horizons as northern Europeans who have been planning their retirement or Expats living in the Middle East, and Northern and Southern Africa look for a stable and safe place of residence.
These buyers can now take advantage of price reductions many of which have resulted from the movement in the Euro/GBP exchange rate in recent times.
Take a property which was purchased in June 2004 for €500,000.00 by a UK owner. At the time that property in British Pounds would have cost £335,570.47 at a GBP to Euro conversion rate of 1.49.
In June 2011 the same property sold for the same price of €500,000.00 would realise £446,428.57 or a gain of 33% over the seven years. So there are some good bargains to be had in this market as UK owners cash in their investments which have paid off handsomely over the period.
The most popular purchases remain those properties enjoying a frontline location which benefit from stunning sea views. As an example in October a villa has been sold in Carvoeiro for €2,200,000 and another in Lagos for €980,000.
Properties on golf courses no matter whether an apartment, townhouse or villa also remain firm favourites with the buying public. A recent bargain was snapped up by a client who purchased a two bedroom apartment in Vale do Lobo for €195,000, and another purchased a Lisbon penthouse for €775,000.
So, is it any wonder I still feel positive about this wonderful place where we live. The combination of an excellent lifestyle, peaceful and tranquil location, excellent services and facilities and the knowledge that our property investment is still secure all contribute to that positivism.
Mary Mangan is the Managing Director of Winkworth Real Estate Portugal. The company has offices across the Algarve and on the Silver Coast.
Article taken from the current edition of Algarve Golf & Property (www.algarvegolfandproperty.com)?