Why invest in the Algarve
19 July 2017 2874 Views
Investing in overseas property is becoming increasingly popular, and there are certain locations around the globe that are becoming some of the best places to get a profitable return. Portugal has always been seen a sought-after destination, as well a popular holiday detestation for those looking to seek some sun.
Investors see Portugal as a prime location as it has a strong real estate market and high rental yields. Despite slower growth rates, Portugal has held onto its appeal as a second home or retirement destination and its safe and solid economic climate continue to draw investors looking for long-term gains.
New development purchases are incredibly popular in parts of the Algarve, and some investors can enjoy returns of 10% per annum in some areas, especially those a stone’s throw away from luxury golf resorts. Buy-to-let options can provide consistent rental income from golf as well as beachside properties, and these serve to boost investment returns, along with subsequent capital appreciation when selling.
As well as being a beautiful country, Portugal boasts excellent direct flights with the UK and the rest of Europe. This accessibility increases potential investment yields and reinforces the continued success of Portugal as an investment location.
Portugal offers a relativity low cost of living, great quality of life, a warm climate, beautiful beaches and a safe and friendly environment which all contribute to the success of Portugal’s property market.
Given Portugal’s desirability, it is easy to see why holiday apartments and homes in the Algarve are among the highest in the world. On top of this, the Algarve’s all year-round climates mean that you won’t just have bookings in the summer but throughout the whole year. With such a demand for property in the Algarve, there could not be a better time to buy into this region, and the benefits of buying could be life changing.
Though at first glance, buying or investing in a property in Portugal may seem difficult, you will probably find the legal procedure is not much different from here in the UK. In fact, it can be easier, as it is high recommended that you engage with an ‘advogado’, which is the Portuguese equivalent of a solicitor.
One of the Algarve’s most prestigious locations is known as the Golden Triangle. Over 50% of people currently buying property in the Algarve’s Golden Triangle region are looking for a great investment property with strong capital appreciation prospects, which can also be rented out for short term holiday lets, to generate an income source.
If you were looking at the Algarve as a more permanent residence, Portugal is known for its strong bond between locals and foreign residents. Many expat communities are meshed into the local social life and enjoying living, holidaying and thriving in business ventures within this region.
As already said, the quality of life is just superb in the Algarve. From its rich cultural heritage to its fantastic and notorious cuisine and delicacies, to quaint, typical towns and modern urban settlements, to resorts, wonderful sandy beaches and secluded locations in the countryside, from music and food festivals all year round to a fantastic nightlife, you can really have it all.
You will find the Portuguese people are all extremely friendly, and the weather in the Algarve is something else. With an average of over 300 days of sunshine every year it is a remarkably welcoming land, with a climate that is considered to be one of the most stable in the world, with both Mediterranean and Atlantic influences.
With all this on offer, will you be looking at Algarve property for sale, and grab that next investment opportunity?