Property in Portugal Not Necessarily so Popular
Published on Tuesday, July 28th, 2009
A recent article in the Guardian about the appeal of property in Portugal spawned a host of spin off articles on property related websites that grabbed hold of anything positive about the nation’s market from the original piece, and pushed the appeal of the country’s real estate to the max.
However, despite the overall positive findings of the original Guardian article’s author Graham Norwood, we would like to argue that property in Portugal is not necessarily so popular with Britons at the moment – even those seeking to buy into a more stable market in Europe perhaps.
The appeal of the nation is of course great, but it is not as great as the appeal of France or the appeal of Spain for holiday home and investment property seeking Brits looking specifically at Europe. And of course, for those turned decidedly off by the horrendously hideous euro/sterling exchange rate at the moment, Portugal is definitely a no-no. In this report we look at reasons not to buy property in Portugal, and present them along with the positives about the market so that you can make a more informed choice.
If you think about it, the mass media hype about negative pricing adjustments in the world’s top property markets has mainly missed out Portugal. You may think that this is because Spain’s market crashes make for a far more exciting story, or the fact that London’s high-end real estate landscape is altering is more interesting perhaps – but actually, the reason why Portugal has avoided making the sensationalist headlines about falling prices and unhappy home owners is because its market remains far more stable and well adjusted.
There’s no such thing as an affordable property really is there, after all a property is the most expensive thing most people ever buy?! But then there are ways to get your hands on a more reasonably priced piece of real estate. For example, you can buy at auction, you can but a renovation project or you can buy abroad in a country where their property is more affordable in relative proportion to the nation in which you currently live.
With markets melting and credit being crunched into the carpet is there anywhere in the world to buy a potentially profitable property anymore? Or should we all just accept the fact that property can no longer be considered an investment, and instead see it as just a luxury item or a necessary roof over our heads?
At a time like this when the true terrible state of the US economy has been revealed with the state takeover of Freddie Mac and Fannie Mae, who’s still profiting from property? And I don’t just mean in America, because banks around the world have lent money and done deals with the 2 US mega-mortgage companies and undermined their own national property markets as a result.
Unlike Barcelona or perhaps Paris, Lisbon doesn’t have a reputation as a stunningly vibrant European city of history, culture, fine cuisine and…expensive property prices.
Let’s be honest about it, the thought of Portugal doesn’t exactly conjure up images of exotic beaches and it doesn’t make for a particularly exciting property destination for investors either because there are no reports of overnight gains to be made in this European nation’s real estate market.
