Portugal's silver coast is pure gold

Portugal's Atlantic Coast has beautiful beaches, traditional townscapes and authentic food - and it's only half the price of the Algarve…

Lovers of the real Portugal - where people still use donkeys, and old ladies wear black dresses and knee-high stockings - are buying on the silver Coast, but they are tormented by conflicting desires.

They want to double their money as the stretch of Coast running north of Lisbon to just above Nazare becomes better known and more developed, but they desperately hope that the authentic Portuguese experience won't be destroyed at the same time.

In the high season of July and August, when temperatures rocket, the beaches are filled with sunbathing Portuguese, glistening like sardines packed in oil, but at other times you can walk for miles with the sound of the Atlantic breakers in your ears and hardly meet another person.

The sea is chilly - in fact the local nickname is the cold Coast because of the water's temperature and the occasional winds - but the beaches are superb sun-traps, many sheltered by rugged cliffs.

Coast remains ‘largely unspoilt’

Several are already meccas for surfers, and although new seafront developments are springing up the Coast line remains largely unspoilt, dotted with pretty towns and villages where people actually speak their own language rather than English, and real Portuguese food is served instead of a toned-down version for northern palates.

As well as giving more of a flavour of the real Portugal, the silver Coast has another massive advantage over the Algarve - properties are roughly half the price. David Rowat of MRI Overseas Property says a new two-bedroom flat with a sea view costing less than £100,000 will rent for about £400 a week in the 12-week high season.

Now, investors are hoping that the silver Coast will see the sort of price increases which lucky early investors raked in after buying on golf developments on the Algarve. Most also hope that further development will be as controlled as the local authorities promise, so that it won't wreck the peaceful, empty feel of the place.

Kerry and Mark Woodhead from Maidenhead bought a two bedroom flat on the Praia del Rey golf development, near the medieval walled town of Obidos, because Mark fell in love with the country when he worked in Lisbon for the foreign office.

Now the owner of a sporting memorabilia company, he wanted a base there, as well as somewhere with a sporting element.

Kerry said: "We have two daughters, Gabriella, four months, and Hannah, four. It's a lovely spot. Very safe and ideal for children. We wanted to be a little removed from the hustle and bustle. We are near Lagoa de Obidos which is a natural salt water inlet with sandy beaches all around it.

"The water's warmer than the sea and it's safe to swim. We like the climate up here because it's not as hot as the Algarve. The Portuguese are very down to earth and you know where you stand with them, but they are also very warm and friendly and very kind."

Off-plan prices rising

The Woodheads hope to let their flat out for part of the year, and for that reason picked a development where the golf course runs right up to the edge of the sand Dunes and beach.

Prices have gone up since they bought off-plan, and now a two-bedroom flat costs from £233,000, a three-bedroom one from £270,000 and a villa from about £625,000.

These prices compare favourably with the top Algarve golf resorts, although some of those resorts have incredible facilities, like art galleries, tennis academies and theatres. Praia del Rey has a five star hotel, a spa, tennis courts, riding nearby and a children's club.

Kerry added: "People are crying out for a more cultural type of holiday where you experience what the country is like, rather than going to a place saturated with new developments. We hope that this area won't be over-developed."

Mark and Karen Jones, of Aylesbury, Bucks, deliberately chose to buy near the silver Coast because they think prices are about to boom.

Mark, an IT consultant, said: "We wanted an investment and somewhere we could use for holidays. We spent night after night on the Internet, looking at places like Cape Verde and even Panama. Eventually we chose the silver Coast. It's easy to get to and it's an up-and-coming place.

"We chose a villa about 10 miles inland with a pool because we are not a beach family, but if we do want to go to the beach it's only a half hour drive. Our villa is one of four new villas put up by a developer on the edge of a village with views over unspoilt countryside are wonderful."

Portuguese ‘different’ from the Spanish

They put the villa, which cost them about £120,000, up for rent via the Owners Direct website. Using Mark's IT expertise, they also produced their own website, www.silvercoastholidayvilla.co.uk. T

he result is that from a standing start they have managed to let the villa for 12 weeks this year, which will almost cover their costs.

But is it too much to hope for rising prices and unspoilt coasts and towns? David Rowat says not:

"The Portuguese like to make a point of being different from the Spanish. They don't want to repeat the mistakes the Spanish have made with over-development and I don't think they will.

"There are already apartment blocks for the Portuguese holidaymaker but the new ones are aimed at the British and Irish market and look a bit different. They come with pools, bigger windows and bigger balconies."

Pauline Bonnani from Savills Select Resorts, agrees:

"The planning restrictions here are quite tough. The build density has to be kept low and the height of buildings is restricted. This is the less commercialised part of Portugal where there are quaint villages, farm land and fishing villages."

Interesting local culture

According to Paul Collins, overseas property editor at BuyAssociation, prices of Portuguese property have grown substantially in recent times.

In spite of this, investors are still showing an interest in the country, which is set to further support house price inflation this year.

"Portugal continues to be a popular destination for overseas property buyers, despite the fact that prices have risen significantly in the past few years," Mr Collins said.

He added: "The Silver Coast, stretching from Porto to Lisbon, is one of the areas to look out for in 2007, along with the Costa Verde, or Green Coast, further to the north."

Mr Collins described some of the properties to be found in this area of Portugal as "keenly-priced" and also pointed out that there is an interesting local culture.

Reasons to be cheerful

• Prices are set to rise.
• Planning restrictions should prevent excessive development.
• Great places to visit like Fatima, Nazare, Sintra, Coimbra and Tomar.
• Good surf.

Reasons to be careful

• English is not routinely spoken.
• Not everyone likes Portuguese food.
• The Portuguese can be a melancholy lot, as their penchant for weepy fado music indicates.