Market 2005 / 2006

Having been a sellers' market for several years, the Algarve has now become a buyers' market, with consequent effects on property prices. Whereas sellers had become accustomed to making extravagant price demands, they are now realizing that this is no longer possible and for some time have been adjusting their prices in line with the market. Often they are also prepared to accept reasonable offers. We also see that buyers are better informed than ever before, be it through internet or having visited several agents before making a decisio, thus being in a position to negotiate good prices.

There was a lot of movement in the market in the first half of 2004 with an encouraging number of sales, predominantly to British buyers. In the second half of the year and moving into 2005 we saw some slowing down in sales but there is still a lot of interest in properties priced up to €500,000.

Although we register a certain degree of interest in the new EU states, Turkey and Eastern Europe, our buyers are looking not just for an investment but also a way of life - and it is here that Portugal has the edge.

For many years now, Portugal has welcomed foreign visitors and residents, adapting to meet their needs without compromising its unique traditions, to provide one of Europe's most desirable destinations with well-established infrastructures and an outstanding quality of life.