If you take a flight from any European capital, you will reach Portugal in the extreme south-west of Europe in just a few hours. It’s this ease of access that is part of the country’s appeal as well as its wide range of different landscapes, wealth of leisure activities and cultural heritage. So how is its property market shaping up as we head through 2015?
Robert Bijker, director of Land & Houses Algarve – Yellow Homes, says,
“Twelve months ago we predicted that trading conditions for real estate would improve which proved to be an accurate assumption. The increase in transaction volume which started in 2013 continued in 2014 at even a higher pace. We believe that programs like the Golden Visa and the NHR (Non-Habitual Resident) will continue to be successful in attracting foreign buyers in 2015. Especially the latter as more and more people from Northern Europe will learn about this program and the benefits.”
The NHR program is a scheme for individuals who have not been a resident in Portugal during the past five years. Once an individual has been granted the NHR status, he or she will be exempt from income tax (work, royalties, pension, interest and dividend) for a period of 10 years.
“This program in combination with an undervalued property market,”
explains Mr Bijker,
“is an attractive proposition for many foreigners who like to capitalise on a recovery in property prices while having a 10-year tax holiday. The market benefits more from this type of buyer versus ‘flippers’, as they have a strong incentive to hold on to their property during this 10-year period. We also noticed that the NHR program enabled some buyers to fast forward their retirement by a couple of years, as their pension’s income will be tax free for 10 years.”
Mr Bijker expects that, despite political and economical challenges, 2015 will be a good year for real estate with both transaction volume and prices increasing during the year – especially if economic growth in the eurozone picks up.
“As there is not much new construction coming to the market in 2015,”
he continues,
“we also expect supply and demand to be more balanced which also will contribute to the recovery in property prices. In addition, we believe banks will continue to strengthen their balance sheets in 2015 – something we always considered to be a process and not an event – which in the future will lead to a more liberal approach towards the issuance of new mortgages and a reduction in the spread.”
Pine Cliffs Resort, Algarve
On a lush 72-hectare estate overlooking the cliffs and beaches of Albufeira, Pine Cliffs is a fully integrated development within a serene resort village setting. The resort is managed by Starwood Hotels’ Luxury Collection brand and offers a wide selection of premium freehold lifestyle properties (Pine Cliffs Residences, Pine Cliffs Terraces, Pine Cliffs Villas) and holiday ownership options.
The resort also offers extensive leisure facilities including a nine-hole golf course and the Annabel Croft Tennis Academy; more than 12 diverse restaurants and bars; the Porto Pirata children’s village; a health club and wellness centre; and numerous shops and boutiques.
From £1.96m / €2.6m / $2.97m
Pine Cliffs Resort +351 289 500 300
Quinta Clere, Algarve
Renovated in 2000, this property is in the ‘Golden Triangle’ vicinity of the Algarve, overlooking Quinta do Lago. It is set in 10 acres of mature gardens with views through the valley to the sea. The main house comprises seven large, en suite bedrooms while the grounds include two cottages, each with two bedrooms, a kitchen and living area.
There are two large terraced balconies above each wing of the house, with stunning sea and valley views. The upper floor also has a glass enclosed gym room and access to a large attic space with potential to be converted into a cinema. Mature gardens include a thatched outdoor seating area with access to the terraced barbecue area and main house kitchen. Other highlights include a swimming pool and gated tennis court.
£8.5m / €11.4m / $12.8m
Portman Properties +351 289 394 960
[email protected]
Quickening pace
Ollie Kirk of Portman Properties reports that, having experienced some quieter years in the general property market up until the end of 2013, due to the Europe wide recession, many in Portugal were relieved to see the property market pick up again at the beginning of last year. He says,
“2015 is looking busier than we,ve seen the market since 2008. Though the crash in 2008 did slow the market to some extent, the high end luxury property market was certainly less affected, and this was obvious through sales continuing in the luxury resort of Quinta do Lago, as well as areas such as Vale do Lobo and Vilamoura.
“However, now with the property market having settled after the lower-end market turbulence, we are seeing a welcomed shift toward a more exciting range of property in the Algarve, with an increase in large luxury property sales in more ‘hidden’ locations. Where once Quinta was the only place to buy, the wealthy are becoming increasingly aware of what lies just outside these areas. Why buy a 3,000m2 plot in a resort, when for similar money you could have 20,000m2 of land with matured gardens, or helicopter access, or even just real privacy? This is something that has definitely become a more emphasised matter over the past year.”
Mr Kirk believes that this shift has come about simultaneously with resort security systems and security personnel reaching all surrounding areas. There is also a realisation that the Portuguese coast offers many similar aspects shared with those of the France and Spain.
“However, Portugal retains tighter control on planning so as to preserve its future,”
he says.
“Therefore, the only difference in the Algarve is a need for expert advice on property before buying into the market, but in the long run this system will protect those buying into the market for future resales, knowing there is a guarantee that over development in your area is not a possibility.”
Central Algarve
These new modern 450m2 residences define opulence and contemporary beach living. They feature exceptionally high quality finishes throughout and are right in the heart of Central Algarve, just a 200 metre stroll through the nature reserve to the golden beach of Falesia. It offers a design-oriented, low maintenance lifestyle with multiple living and dining spaces, four bedrooms and a kitchen fully equipped with top quality appliances and countertops.
From £753,000 / €995,000 / $1.14m
Yellow Homes – Land and Houses Algarve +351 289 301 294
[email protected]
Chalet Maria Pia, Estoril
In 1893 Queen Maria Pia, widow of King Luis 1, acquired the Chalet and immediately embarked upon a wide ranging remodelling of the property, along with complete interior redecoration. This is particularly evident in the wall and ceiling frescoes of painter António Ramalho which still remain. The Chalet became the property of António de Herédia, the son of the Viscount of Ribeira Brava, in 1913 and has remained in the family since then.
The property which was formerly the summer residence of the Portuguese royal family in the late 19th century is set high above the seafront cliffs in Estoril. Totally south facing, it has uninterrupted views over the Bay of Cascais to the mouth of the River Tagus. There are actually two main buildings, the Chalet which is partially restored and the former stables and servants’ quarters. This has been converted into a small winery and offices but would easily convert into a second house. The property also includes an elevator, expansive gardens, a large pool with changing rooms and a full kitchen plus 500 vines of Merlot variety planted in pots.
£10.6m / €14m / $16m
Fine & Country Cascais +351 214 643 636
Tavira, Eastern Algarve
Built in 1999 on the highest point of a 13 hectare plot, this villa has spectacular views over the surrounding valley to the sea. A fabulous 40,000m2 garden with a grand pool area and terraces surrounds the house while a separate guesthouse with three bedrooms and two bathrooms is ideal for visiting friends and family. The villa includes several extras such as under floor heating, an alarm system, a double garage and antique furniture.
£1.96m / €2.6m / $2.97m
Engel & Volkers +351 289 358 955
Praia Da Luz, West Algarve
Eagle’s Eye is an exceptional private clifftop property overlooking the Atlantic Ocean. Set on a six hectare site overlooking the pretty village of Praia da Luz, this cleverly designed, contemporary house has been built to the most exacting of standards. Covering 1,011m2, it includes five bedrooms and bathrooms, three reception rooms, staff accommodation and a swimming pool.
£9.8m / €13m / $14.9m
Knight Frank International +44 (0)20 7861 1097
Quinta do Lago
San Lorenzo North is one of the last untouched corners of Quinta do Lago and presents a final chance to buy one of the remaining 22 plots available. After purchasing the plot, buyers are helped by Quinta do Lago to create the property of their dreams, using advice and the services of some of the world’s best architects, landscape gardeners and interior designers. Specialists on the Quinta do Lago team can also fully-manage the build as well as arrange for property management and holiday lets once the house is built. The resort also provides buyers with a host of amenities and activities on their doorstep.
This show villa is a turnkey property on a plot of 2,145m2 with views over the 10th hole of the world-renowned San Lorenzo golf course. Developed over a layout of 850m2, this contemporary home features a double height covered terrace, gym, home-spa, games room and cinema room as well as five bedroom suites. The kitchen is of Italian design and it has a high specification finish with hidden appliances. There is also a beautiful outdoor kitchen and Portuguese marble swimming pool.
£4.5m / €5.9m / $6.8m
Quinta do Lago Real Estate
+351 289 390 700
Tavira, Eastern Algarve
Beautiful villa in a countryside setting where traditional Portuguese meets contemporary style through clever use of stone, wood and glass. Downstairs comprises a sitting room with a high bamboo ceiling and dining room overlooking a glass-walled internal garden atrium and leading to a designer kitchen, utility room, study, and cloakroom with concealed shower. Upstairs is the master bedroom with two large balconies, a walk-in dressing room and en suite bathroom.
Leading off the central hall is the three-bedroom, two bathroom guest wing with its own large sitting/dining room and fitted kitchenette. Gardens surround the house with covered sitting, dining and barbecue areas and a decked patio adjacent to the infinity swimming pool looking over the extensive estate of 25,000m2 with olive groves, carob and almond trees.
£1.2m / €1.6m / $1.9m
Ideal Homes Portugal +44 (0)800 133 7644
