It’s been almost 8 months since the British public voted to leave the European Union. A lot of things have been happening behind the scenes since then. Only earlier this week, the British parliament decided in a historic vote to give the power to trigger Article 50 to Prime Minister Theresa May.
This should set in motion the processes that would lead to the formalisation of Brexit. What does this mean for you if you’re one among the many British expats looking to sell your property in Algarve, Portugal fast in 2017?
Well, you should for one look to capitalize on the weakness of the British pound. The Pound fell to a historic low of 1.11 EUR in the months after Brexit, but has since staged a moderate recovery to 1.18 EUR. This is a far cry from the high of 1.57 EUR last seen in 2015, when David Cameron had just won his second term as the Prime Minister.
A lot of British expats bought properties for sale in Algarve, Portugal during this time, when the Pound enjoyed an obvious advantage over the Euro. So they enjoyed tremendous buying power at that time. Now, they stand to make a nice profit by selling their holiday homes in the Algarve and repatriating the proceeds the UK.
As Luis Lima, head of a real estate agency APEMIP explains, “Some U.K. nationals who bought Portuguese real estate decades ago and waited for the market to recover have now decided to sell for a profit. It’s an intelligent move. I’m sure the British will continue to invest in Portugal.”
British expats now stand to get more pounds for the sale of their property, than would have been possible only a couple of years ago, because of the weakness of the pound against the euro.
It’s something a number of British expats are doing right now, selling their second home in Portugal, to other foreign buyers. Who is buying? The French, of course. A number of French nationals, especially retirees, are relocating to Portugal because of the low taxes here. It also helps that the Algarve is perhaps one of the most sought after overseas property destinations in the world.
Zoe Hawker of the real estate company Fine & Country Algarve says, “British property buyer numbers began to fall after the sterling fell following the Brexit vote. The flip side was very good because the French are coming in with stronger euros and buying from agents like us who happen to have large portfolios from British sellers.”
Alison Buechner Hojbjerg, of the real estate agency Quinta Properties adds, “Both buyers and vendors have tried, quite understandably, to take advantage of the fluctuating currencies, and for the most part this has worked well for the market. Many vendors are sterling-based and consequently were prepared to accept lower euro offers which resulted in some great deals for both parties.”
So what does this mean for home prices in the Algarve? They are expected to rise by 5% in 2017, according market experts. The Algarve is considered to be a safe haven for overseas investors, and has plenty to offer, great climate, relaxed lifestyle, friendly people, unspoiled beaches and low crime rate. There will always be people looking to buy villas in Algarve, Portugal.