The Algarve offers
the second home
buyer sun, sea,
sand and golf.
Portugal
A key European golfing destination, the Algarve is Portugal’s
residential property hotspot, and while economic difficulties aren’t
going away, Lisbon and Porto also show strong housing demand
Owing to its attractive climate and strong logistical construction is focused on the coastal areas and major
links, Portugal is firmly established as one of Europe’s cities where there is stronger economic development.
prime golfing venues. The Algarve, in particular, is home Almost 30 per cent of Portugal’s residential stock
to a number of high-end resorts boasting championship comprises holiday homes and these tend to account for
golf courses and strong on-site amenities such as luxury the better quality properties on the market. Otherwise,
spa operations. the quality of homes is generally poor, and national data
Homes with unobstructed golf or sea views continue shows that a many properties are in a state of disrepair.
to generate high price premiums. Official statistics Demand for property in the Algarve and principal
indicate that average villa prices in the Algarve were cities should not deflect from the fact that the
around €1,650/sqm in 2006, however, these sources Portuguese economy has been slowed down by the
tend to underestimate real values. global downturn.
One such prime golfing destination and property Portugal’s population totals just over 10.6 million
hotspot is Quinta do Lago. Only a short drive west of people and has been slowly rising since 2000. Restoring
Portugal’s Faro airport, the resort has enjoyed consistent public finances and improving public administration
growth over the last 20 years. As the stylish resort remains the focus of economic policy since 2002.
has matured, it has acquired an increasing number of Foreign Direct Investment (FDI) into the country rose
permanent or semi-permanent residents and prices from €2.5 million in 2005 to €4.9 million in 2006.
have held in recent months as people continue to buy
and sell in the resort. Quality properties
Away from the Algarve, there is strong housing The residential investment market has been strong in
demand in the Lisbon and Porto regions, generated recent years supported by both foreign and domestic
by people moving towards the principal coastal cities. investors capitalising on growing values. While
Rising prices in central Lisbon and Porto are also investment has cooled in the last year, areas where there
gradually shifting housing demand to the peripheral is strong demand and low supply of quality properties
zones of the cities. As a consequence, any new continue to be supported by investment activity. n

Cascade Resort Pinheirinho Hyatt Golf
Located on the peninsula of Ponta On Portugal’s unspoilt Alentejo
da Piedade, 20 villas and a variety coast. 204 luxury residences, 27
of apartments are complemented hole golf course plus a five star
by a five star hotel and golf course. Park Hyatt hotel and beach club.
Computer generated image
Price: €2.5 million Price: From €1.3 million
savills global residential review 13
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