Market 2007 / 2008

The Buyer

The main buyers in this area are British (approximately 70%), German (approximately 15%) and Dutch (approximately 8%) followed by the Spanish, Scandinavians and the emerging Russian/eastern European market.

Due to the success of low cost airlines to Faro the average time an owner spends in their property has increased by approximately 30% representing 3-4 months a year. Many owners now regularly commute for long weekends.

This trend is reflected in the wish list of the potential buyer who is now demanding central heating as a standard feature. In addition, to the latest date security systems or gated communities for “lock up and leave” properties. This factor has extended the season of the established tourist resorts effectively creating new life in these areas.

Property Values

Prices have increased in the past 5 years, so has the average spend, which is now running at approximately €750,000 euros, especially the golf villas has to be mentioned.

The majority of demand is focused on apartments and villas with prices over last year running at an average of 10-15% and in some cases as high as 20%, particularly for plots of land, which have recently been in great demand.

Rental Market

Approximately 10-15% of all clients will rent their properties and they can expect good rental yields in this area year round which can average from €10-35 euros per sq metre, per month, depending on the property and the facilities.

Demand is high for good quality property and it is imperative that any rental property is of a high quality with heating and air conditioning and includes features such as a swimming pool.