The Portuguese property market is showing signs of recovery after commercial-property investment more than tripled in the first half of the year, according to Cushman & Wakefield.
Spending on commercial real estate rose to €161millioin (£136.2million) in the six months through June from about €47milion (£39.8million) a year earlier, while investment in residential property has increased by 60 per cent to €230million (£194.6million, according to the international property consultancy.
The property market is strengthening on the back of a more stable economy in Portugal, which expanded 1.1 per cent in the second quarter from the previous three months, the first increase since 2010. Despite the real-estate slow down, Portugal remains highly attractive to tourists and retires alike with its castles, wines, ancient ruins, and cobblestoned streets. It prides itself on having a quieter, more civilized pace of life than its neighbour, Spain.
As a retirement hot spot Portugal ticks all the right boxes. It is warm and sunny in the summer and has at least a temperate climate all year round, the cost of living is relatively affordable, the standard of living is excellent, the countryside and the coastline are beautiful and then there are the golf courses that the Algarve is famous for.
Typical of what is available to investors there now are opportunities to buy into new apart-hotels near some of the best beaches in Europe and tourist amenities. Prices can be as low as €60,000 for one-beds – around half what was being asked for them at the peak of the market in 2007. Repossessed units sold by banks are typically available with 100 per cent finance, so investors might only need to put down just £5,000, to cover all the closing costs.