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FEBR UARY 2010
|
www.opp.org.uk Destination focus

Portugal
|
33
No hard sell
COVER FEATURE
WORDS
|
Alex Evans
INDUSTR
Time to refresh your portfolio?
Paying the price
Look no further than Madeira Island
Portugal offers today’s international buyers everything they are looking
Y
and The Palheiro Estate
for – except the prices they are willing to pay. OPP asks whether
discounts are really the answer to increased sales in 2010
• Sub-tropical climate for year-round enjoyment
• Beautiful tropical vegetation and stunning natural scenery
PEOPLE
• Elegant way of life - safe and secure
• Easy access by air
• Full resort facilities - golf, hotel, spa, restaurants,
historic gardens, big game fishing
• Luxury villas and apartments from €325.000
• Properties complete and ready
DESTINA
for occupation - fast and safe
• Full property management services
including rentals TION
• Generous commissions available plus
full support for agents
Widely viewed as Spain’s are currently around 1.160€/m2 - a We have to face it; the time of sky-high profits is over. Which
BUSINESS
expensive neighbour, Portugal difference of 7%. purchaser or investor is going to fall for this any longer?
has enjoyed much greater price “With the caveat that this is an Everyone knows that profits should be reasonable and
stability than most of its European overview of the entire country, it seems explained by rational calculations and no longer by greed.
competitor destinations. But the cost of to indicate a stable, slow moving Marcella Spee Horta e Costa, Azul Prestige Properties
this stability has been sales, with a market that has regressed to previous
general refusal to discount among levels, but not in an overly dramatic a residential tourism destination, and developers in promoting Portugal
developers sending international way. Compare this to countries such as has consistently been in the top five has rolled on for years, but residential
buyers to markets with a more Latvia and Lithuania where prices have most searched on UK portals including tourism consultancy VIVA IN has
pragmatic attitude – namely Florida, dropped up to 65% in the last 2 years.” Rightmove Overseas and The Move been pro-active in not only creating
Spain and Turkey. Channel – but it’s international profile a new platform for resort developers
DE
Amidst growing concern that Price to sell needs work. under an umbrella Portugal brand VEL
Portugal will have another quiet year, While many continue to blame “This market is fantastic for buyers,” (vivainportugal.com) but has organised
OPER
OPP talked to developers, agents and Sterling weakness for the decline says Stephen Anderson, managing several conferences and workshops to
master agents about what they are in sales to Brits, others believe that director of agent Infinito Overseas help developers adapt their sales and
doing to attract more international developers seeing a smaller profit as Property. “The quality is perhaps the marketing strategies. The challenge,
buyers, which areas are likely to see the an ‘unacceptable loss’ are maintaining best in Europe for the money, the build though, is convincing developers that
best activity, and what did sell in 2009. Portugal’s ‘over-priced’ image – and this density is low and the property sizes they need to change their attitude
So how bad was last year? “Average is deterring buyers. are generous; the problem is there according to Viva In’s founder, Lucilia
house prices have shown a positive “We have to face it; the time of sky isn’t enough media out there to catch Cruz Pinto.
T. +351 291 794 015
trend throughout 2009,” observes high profits is over,” says Marcella Spee ‘undecided buyers’ attention. “A lot of developers did nothing last
M
real.estate@palheiroestate.com Richard Mills, director of Azul Homes. Horta e Costa, Commercial Director “Portuguese property owners can year. Some can afford to wait but this
ARKE
www.palheiroestate.com
“The average bank evaluation of a of Azul Prestige Properties. “Which benefit from a great rental return, is an option for less and less. There’s
property was higher at the end of purchaser or investor is going to fall and incredibly cheap mortgage rates a need to change and do something
TING
the third quarter of 2009 than at the for this any longer? Everyone knows making the purchase easier and more different together, preferably under an
start of 2009 and bank evaluations that profits should be reasonable and cost effective, but all this is irrelevant if umbrella brand of Portugal. We need to
have returned to a similar value seen explained by rational calculations and it’s not known.” realise that Portugal itself is competing
TELIER DO SUL
in 2004. Bank evaluations peaked at no longer by greed.” The debate about the role of with other destinations, and other
Best Development
portugal 20752 A
around 1.250€/m2 in 2007, and they Portugal has enormous appeal as government, the tourism industry and destinations are winning.”
FEB10_OPP_MAG.indd 33 28/01/2010 15:20
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