The Portuguese Property Market (Zie Nederlands beneden)

Until the early 2000´s Portugal had not really been in the limelight of the "second house" or emigrating buyer from Northern Europe. Around 2003 this changed radically with many TV programs in Northern Europe focussing on this newfound wonderland which was supposedly both cheap and beautiful. 

In Portugal in the meantime, many of the Portuguese younger generation had moved to the cities to work and study in the years preceding this change and the old agricultural folk had been left to tend the land. But as these old folk grew older and unable to continue working or passing away, many farms were abandoned and became derelict, and some houses even reduced to ruins. There was however, no way the youngsters could be enticed back from their newfound freedom and modern lifestyle, and so the stage was set for a flood of properties going up for sale. 

To date this still holds true, and one can literally see an appealing property whilst travelling around , stop and ask about it and the chance will be great that it is for sale ! This meaning that there is a big supply for a small demand, and thus the foreign buyer who comes to Portugal to view has so much choice, that it can become confusing and difficult to decide which area or property is the best for them. 

Foreigners often mentally compare foreign property markets with the one they know, and often ask us how long a place has been on the market. In Portugal this means very little as sometimes, surprisingly, ugly and expensive properties sell immediately, and beautiful cheap ones remain undiscovered for years ! With such a big supply, for the sellers, it is often a matter of luck to be found

Prices in Portugal have shot up in only a few years but there is no norm as such to go on. Owners ask what they want to and one cannot easily compare one property with another. Some foreigners are overly worried about being deceived on this front, and others are deceived, and still think they have a bargain. This is a difficult aspect of the profession for an agent, who should be impartial and work in the best interest of both parties. It is best not to become too emotional....as  this is sure to cloud the vision. Doing some homework before a visit will help, like making a comparative list of similar properties found on the net. 

One should tread carefully when thinking of making money out of investment or tourism. Subsidies in general have faded out of existence and if available, difficult and timewise to obtain. If one buys with the idea to renovate and sell at a profit one must keep in mind the big supply as well as the tax levied over the profit.  

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