Do you have a holiday home for sale in the Algarve, Portugal? There is a huge demand for properties in the Algarve, considered to be one of the top overseas property destinations in the world.
The Algarve is in south Portugal, it is a very popular tourist spot, with great beaches, perfect climate and friendly people. The lifestyle here is relaxed and laid back, and very comfortable. The region has all the modern amenities that you would expect to find in a first world country with none of the traffic or stress.
For this reason, there is always a huge demand for holiday homes here. Britons have traditionally been the biggest buyers of properties in Portugal, but the Brexit referendum of June 23, 2016 has saw the British interest flag a bit.
As Zoe Hawker of Fine & Country Algarve says in an interview with Bloomberg, “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.”
But as Alison Buechner Hojbjerg of Quinta Properties explains, many British expats who own holiday homes in the Algarve are taking advantage of the variation in exchange rate by looking to sell property in the Algarve, Portugal online. Ms. Hojbjerg says, “Many vendors are sterling-based and consequently were prepared to accept lower euro offers which resulted in some great deals for both parties.”
The Algarve has been getting a lot of interest in recent years because of the uptick in the Portuguese economy after years of recession. A report by the OECD in 2015 predicted how Portugal was set to come out of the recession and become one of the fastest growing economies in the region.
The OECD report said at that time, “The [Portuguese] recovery is projected to strengthen on the back of strong external demand, a weaker euro and lower oil prices. Domestic demand has started to rise, and business investment is projected to pick up further in 2016.” The prediction has certainly materialised in the Algarve.
What’s interesting is that a lot of non-traditional investors have been looking to buy holiday homes in the Algarve, Portugal, says Karin van den Hemel of Pine Cliffs Real Estate in an interview with the Financial Times: “Real estate in Portugal is changing. We’ve always had English, Irish and German buyers, but now we’re seeing new nationalities investing here. We’ve had our first Chinese buyers, Scandinavians, French and other non-Europeans, including South Africans, too.”
Hawker adds that French nationals are today the most important buyers of properties here. She says, “What’s really made a difference in this region is the French. I would say half our leads today are French; it’s the biggest single thing that’s changed in the market here.”
European buyers are attracted to the Algarve because of the low tax regime here. EU citizens are exempt from any tax on their non-Portuguese income, which is why so many retirees from France are looking to settle down here.