7th April 2010: Algarve Property Sale News
Over the last 10 years there has been a more demand for property in emerging areas and countries around the globe, often with a view to profiting from increasing property values. However, in today’s economic climate, buyers have returned to traditional, established second home destinations and are buying for lifestyle, rather than purely investment purposes according to the latest results of a survey carried out by Savills.
The survey has also shown that it is buyers with a higher disposable income (less mortgage reliant) who were responsible for last year’s purchases (2009). Further, with house price decreases of up to 30% even in the most sought-after locations, these individuals have been able to invest in such high-end properties at a discount. Portugal’s Algarve region was listed in the top 3 most popular 2009 second home locations.
''In 2010, the overseas second home market will be characterised by cash-rich, lifestyle buyers benefiting from lower prices in traditional, established holiday home hotspots,'' said Charles Weston-Baker, Head of Savills International. A fifth of all respondents reported that they are considering or planning additional holiday property purchases in the future, demonstrating that despite the climate, the attraction of overseas investments has not disappeared.
However, it will be essential for market conditions and mortgage availability to improve, to support any volume of future purchasing activity. ''Traditional holiday hotspots are among the top performing destinations with places like the Algarve being a great option for reliable rental returns. ''For anyone hoping to rent, it is essential to research the tourist market first, particularly when considering emerging markets. Access to the destination should also be considered. For example, reliance on one airline is not ideal as route cancellations could have a big impact on bookings.''