Portugal is still a top choice for many buyers looking for a second home in the sun, in spite of the economic difficulties faced by the country. Buyers from Northern Europe and Britain are particularly fond of the Algarve and the Silver Coast, and estate agents are still receiving pretty high levels of enquiries from buyers looking to purchase correctly priced property. Many are cash buyers, and are able to take advantage of the extensive price falls that have occurred since Portugal entered recession more than two years ago.
This market for second homes hasn’t been affected as much as the primary housing market. In spite of this, buyers are unwilling to even look at properties they feel are overpriced, and sellers do need to be prepared to negotiate. Obviously those buyers who are able to complete a purchase quickly are far more attractive to sellers, and as such may be able to find their dream home at a reasonable price.
It is a bit of a different story elsewhere, as estate agents in Portugal have found that in areas primarily driven by demand from the domestic market, the price falls have been more substantial, especially in the mainly residential cities of Lisbon and Porto. Some sellers in these areas don’t have a choice as to whether or not they sell their home, as they may need to move to seek employment elsewhere or to be nearer their children’s school.
Even though these sellers are faced with a falling market, they are able to pass on these price reductions throughout the chain. An increasing number of people are being forced to sell due to unemployment, the threat of repossession, or simply because they cannot afford the higher interest rates.