Portugal avoids ‘the domino effect’

It’s business as usual in The Algarve’s soaring property market.

Despite the ongoing downturn in Spain, where more than 100,000 people lost their jobs as half the country’s small real estate agents closed down due to a downturn in sales, the Algarve property market appears to be unaffected.

In 2006, around 40,000 of Spain’s 80,000 small estate agents were forced to close following a dive in sales over the last two years and industry experts believed that this signalled the end of the Spanish property boom, which has been a driving force for the country’s economy for years.

However, others believed that the industry was merely balancing itself out after the market became saturated with estate agents.

Spanish ‘free for all’

Former editor of The Resident, Brian Adams commented:  “The reason for the downturn is that buyers are discovering other markets, including Eastern Europe, and with more affordable house prices, they are getting more for their money. People have basically grown tired of the same old thing.

”The property market and construction industry appear to be far more regulated in Portugal. There was a free for all in Spain. I don’t see why a domino effect should occur in Portugal. This problem appears to be indigenous to Spain”.

”There is still so much green open space in the Algarve and local councils are preserving these areas. If the Portuguese government has done enough in creating demand, the market will be in a strong position”.