The Algarve property market is turning
We’ve been reporting on the very tough economic times that the Algarve has been going through in the past few months, but today we’ll be reporting on some better news actually, in regards to the Algarve property market.
A recent survey amongst local property agents has revealed that buying and selling of property during 2012 has shown some improvement when compared to the past couple of years. In fact, about seventy percent of the leading Algarve property agents who took part in the survey are of this opinion.
The 10-10-10 Survey – as it is called – contains ten key conclusion, and was a joint project between ILM Group and Property Lynx. The survey is carried out three times per year and its goal is to measure market confidence, performance and market trends – the next one for instance will be completed in May 2013 with its results becoming available in June.
The majority of participants reported the enquiries, offers and transactions and offered evidence of enquiries leading to complete purchases. For instance, 26 percent of enquiries for villas and luxury villas converted into 27% of sales, not a bad conversion percentage indeed.
Interestingly enough, the market is dominated by the top end and middle range, meaning that 27% of transactions were at more than one million euros – which is a 175 increase compared to 2011 – while transactions in the 100,000 to 500,000 euro bracket accounted for 51% of the market.
The survey also revealed that the overall market demand has been hindered by several motives such as pricing factors, lack of finance opportunities and unreliable banks, as well as general concerns in regards to the Euro’s stability.
Another major problem that the Algarve agents reported was the lack of support from the government and the regional and local authorities, as well as with the overall promotion of the region. They said that they cannot compete with other destinations when the focus of the region’s tourism industry stays on golf and the beach.
On the other hand, the survey does conclude that the regional agents, operator and developers are overall optimistic about 2013’s prospects, optimism that is propped up by the Portuguese government’s commitment to market the ‘Living in Portugal’ initiative.
