Eastern europe investors to enter the algarve?

Photo: Rodrigomezs

Investors from Eastern Europe could enter the Algarve property market in large numbers, according to one resort chief.

Speaking in the latest ILM Algarve Property Market Report, which surveys agents and developers across the popular region, Diogo Gasper Ferreira, President of the Association of Portuguese Resorts, says that demand from buyers in Eastern Europe is likely to rebound in the coming years, following a slower period in the wake of the issues surrounding Russia.

"When it comes to second homes, almost 95 per cent of people buy on the same continent in which they live. It’s a question of access," says Ferreira. "Approximately 15 per cent of people in northern Europe with free wealth of more than €2 million have a second home in Southern Europe. But if you apply the same criteria to wealthy individuals in Eastern Europe it’s less than 0.5 per cent.

"I think in future we’ll see Polish buyers here. It’s a big market of almost 40 million people and they’re becoming richer. I think we will see Russian buyers, too. Russia is a market of 140 million people, more than twice the size of the UK, and there are many Russians with the potential to buy property at €500,000 to €1.5 milllion. Assuming the current economic crisis in the country improves, it will be a huge market for Southern Europe and the Algarve in the future."