If you’re interested in buying property in Portugal, news published recently might help you make that final decision to invest.
The OECD (Organisation for Economic Co-operation and Development), which comprises 34 countries, recently referenced Portugal as one of the better places in the world for investing in real estate.
For both price-to-rent ratio (a way to calculate the profitability of owning a property) and for price-to-income ratio (a way to calculate a property’s affordability), real estate in Portugal is, according to the OECD, possibly one of the most viable countries in Europe for investment.
The percentage of plus or minus valuation of property prices, in relation to long-term averages, is shown on an OECD graph. In simple terms, the result is that accommodation is 7% lower, and earnings from leasing property are 13% better, than in previous years.
Because we focus solely on Algarve property, Meravista tracks all news related to the Portugal property market. Our database for the past year validates that those Algarve properties which have reduced in price, have dropped between 10% and 30% from their original listing price.
To further demonstrate Portugal property’s value and affordability, in June 2013, Statistics Portugal released bank valuation information which rates the average cost of property per square meter in Portugal at €996m², while the rate for the Algarve came in at €1228m².
The affordability becomes more obvious when, as per the Telegraph, these rates are compared to the average cost of property in the UK, rated at €2000m², while Westminster in London carries a hefty €8850m² price tag.
One study of European property prices claims that the cost per square meter is lower than Portugal in only three countries: Bulgaria, Macedonia and Moldova. It’s not hard to see why choosing property in the Algarve becomes a logical choice for retirement.
Globally conditions are improving, and this is reflected domestically as demand for property in Portugal is growing and the economy is getting stronger. The current account deficit for Portugal is expected to close by 2014.
Meravista’s real estate agencies are also confirming an improvement in sales for 2013:
Coast & Country Homes is located in Quarteira, on the Algarve coast. Director Sigrun Vaz doz Santos says: “Coast and Country started in 2010 in a very depressed market. However since the start of this year, we have seen the number of enquiries increase by 20% percent, which demonstrates that the Algarve property market is on the road to recovery.”
The Algarve property market is thought to be at its lowest point, making this the ideal time to invest in real estate.
Brought to you by Meravista – the place where smart people search for Algarve property for sale.
Affordability and Undervaluation of Portugal Real Estate
by Meravista
If you’re interested in buying property in Portugal, news published recently might help you make that final decision to invest.
For both price-to-rent ratio (a way to calculate the profitability of owning a property) and for price-to-income ratio (a way to calculate a property’s affordability), real estate in Portugal is, according to the OECD, possibly one of the most viable countries in Europe for investment.
The percentage of plus or minus valuation of property prices, in relation to long-term averages, is shown on an OECD graph. In simple terms, the result is that accommodation is 7% lower, and earnings from leasing property are 13% better, than in previous years.
These statistics are supported by news on Bloomberg, that in order to reduce inventory and create demand, banks have been cutting Portuguese property prices by as much as 12%.
Because we focus solely on Algarve property, Meravista tracks all news related to the Portugal property market. Our database for the past year validates that those Algarve properties which have reduced in price, have dropped between 10% and 30% from their original listing price.
To further demonstrate Portugal property’s value and affordability, in June 2013, Statistics Portugal released bank valuation information which rates the average cost of property per square meter in Portugal at €996m², while the rate for the Algarve came in at €1228m².
One study of European property prices claims that the cost per square meter is lower than Portugal in only three countries: Bulgaria, Macedonia and Moldova. It’s not hard to see why choosing property in the Algarve becomes a logical choice for retirement.
Globally conditions are improving, and this is reflected domestically as demand for property in Portugal is growing and the economy is getting stronger. The current account deficit for Portugal is expected to close by 2014.
Meravista’s real estate agencies are also confirming an improvement in sales for 2013:
Coast & Country Homes is located in Quarteira, on the Algarve coast. Director Sigrun Vaz doz Santos says: “Coast and Country started in 2010 in a very depressed market. However since the start of this year, we have seen the number of enquiries increase by 20% percent, which demonstrates that the Algarve property market is on the road to recovery.”
The Algarve property market is thought to be at its lowest point, making this the ideal time to invest in real estate.
Brought to you by Meravista – the place where smart people search for Algarve property for sale.