A key feature of the conversations we have with prospective buyers at the moment is about ‘getting a good deal’. There’s been a lot of hype in the overseas media generally about the fact that it’s a buyers’ market and there are bargains galore to be had throughout Portugal.
Yes, it’s true that there are bargains to be had, but it’s also fair to say that you pay for what you get in any market, and the determining factors in terms of what is the ‘right’ price for a property remain the same.
A recent purchaser having enquired about a particular property remarked that he could get a three bed villa with a pool in the countryside several kilometres inland from the ocean and from local towns and amenities, for a fraction of the price of a similar property on the outskirts of Carvoeiro. And he’s absolutely right – he probably will.
But he’s forgetting one little thing – why is it a fraction of the price? The answer is because it’s remote and has very limited appeal in any market. It’s a fact that location remains one of the key determinants of property prices now as in the past.
When we first meet prospective purchasing clients and ask them what they are looking for, there are a number of key criteria that are mentioned time and time again. Most people will immediately state that they are looking for a villa or apartment with a certain number of bedrooms, and then comes the main list of criteria – sea views, proximity to golf courses, walking distance to the local town with shops, bars and restaurants, close proximity to the beach, ease of access to the airport etc.
So is it any wonder that properties that address some or all of these criteria will be more sought after and priced relative to their appeal? Obviously the property has to be of a good standard of construction and finish but if you are really comparing like with like, then the property that ticks more of the boxes will achieve the better price every time.
A key component in terms of the property market in Portugal is the vibrancy of the holiday rental market. Owners here continue to generate good rental returns and many of the same criteria that you look for when buying a property are equally important in terms of renting a holiday property.
Whilst overall we have seen significant discounts on asking prices over the past four years, it’s fair to say that areas like the Golden Triangle with resorts like Vale do Lobo, Quinta do Lago and nearby Vilamoura, which offer world class golfing and leisure facilities combined with a support infrastructure of shops, restaurants and bars, still achieve better than average prices for properties sold.
In the Galé area close to Albufeira, we see increased interest in villas close to the beach with the success of Michelin starred Vila Joya and Apolónia supermarket demonstrating the popularity and cachet of the area.
Properties in Carvoeiro are priced to reflect the fact that the area really has everything including an international school and a vibrant all year round expatriate community. Likewise Lagos and Praia da Luz, with access to beaches and the marina, excellent golf courses and two great social centres, remain vibrant, ever popular and good areas for property purchase.
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Mary Mangan is the Managing Director of Winkworth Real Estate Portugal. The company has properties for sale on the Algarve and on the Silver Coast.
