By Mary Mangan
The recently published survey of estate agents in the Algarve conducted by ILM and Lynx group has clearly indicated that sentiment is more positive this year amongst estate agents than previously in terms of activity in the real estate sector in Portugal, with a reported increase in transactions completed. This is great news for the sector, generally and also for the economy.
However, whilst lauding the positives we must also remember that although the number of transactions is on the up, we are still a long way away from the activity levels experienced in the last decade in the sector, and buyers have a large number of properties to choose from in the current market.
I am reminded of the saying ‘the day you buy is the day you sell’ and certainly we are seeing buyers really focusing on their list of requirements and taking longer to make buying decisions as they ensure that the property they buy now can be sold in the coming years.
Buyers are very risk averse at the moment and they are also prepared to wait for the right property or the right price before they will commit to purchasing. It’s not just about the price though, it is about the value and what they are getting for their money.
The buying decision nowadays is based on a combination of factors and buyers are very well informed and have done their research in advance.
Top of the list as ever comes location, and the old maxim ‘location, location, location’ is still as relevant today as it has ever been.
Properties that are selling are well located, often with sea views, and the more established neighbourhoods and towns continue to dominate the list of preferred locations for prospective purchasers. Proximity to bars, restaurants, amenities like beaches, doctors etc, and shops is also a key requirement.
Next is the list of features the prospective purchasers feel are important to them in terms of their own enjoyment of the property. The feeling tends to be that if this list works for them then in the future the property is more likely to be attractive at resale time.
Something that is cropping up more and more is a requirement for heating in a property. The profile of owners we are seeing at the moment are spending longer periods of time here, particularly in the out of season months, and heating is a requirement for the cooler months. So a heating system and a fireplace/wood burner are regularly appearing on the list. Likewise double glazing. It remains to be said that air conditioning for the hot summer months is a must.
Swimming pool or access to a swimming pool is also now almost a key criteria for the majority of prospective buyers. Access to the amenities on site in a condominium is also a major consideration. Safety enclosures around pools are important so children cannot gain access without a responsible adult in tow.
At least one large balcony or terrace is also a main requirement, so owners and extended family members can relax and enjoy the outdoor life. This must be large enough to accommodate a family-sized table and chairs and a BBQ area. The balcony/terrace must also be private so that owners can really relax and enjoy the space without having to worry about being overlooked or having another group of people close by.
Car parking is key for summer months and also for convenience when cases and groceries have to be unloaded and delivered to the property.
In apartment complexes an elevator is very important for access to properties on upper floors. Whether a young couple with children and buggies, older family members or just taking the family shopping to the apartment, it can be problematic to climb stairways.
New buyers generally are not interested in refurbishing, so a property in tip-top condition will always sell more quickly. Likewise, if the property is in good decorative order and well maintained then the new owners really can just move in straight away without any complications.
When purchasing on a condominium, prospective purchasers are usually realistic about charges and will pay a reasonable fee for a good level of maintenance and facilities. Property owners need to work with their condominium managers to ensure that the price charged annually reflects what the market will tolerate for a good level of service. The value proposition comes into play here again. This area is critical in the current environment.
The above are some of the main requirements prospective purchasers are listing when they start their search for a property at the moment, and these criteria are reflected in the profile of properties changing hands in 2013.
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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.
