Portugal ‘raising the bar’

The quality of new build property in Portugal is among the best in Europe, reports Assetz...

While Spain has long been the most popular destination for Britons buying overseas, be they buy-to-let investors, holiday home purchasers or ex-pats retiring to the sun, at least one of its neighbours has been doing nearly as well.

As it happens, that neighbour is France, but this may simply mean that many of the best deals in Portugal have been missed as buyers look elsewhere.

New build properties in Portugal, for example, are raising the bar when it comes to quality standards, according to James Aitkin, director of Portuguese property specialists Quinta Sales.

Better than the UK?

He said: "Newer properties that are being built are of a higher specification than possibly the UK in terms of dampness. The properties here now are so well built. The standard in construction is the best I have ever seen. As a result, new build was definitely better for investors than older properties, many of which were still prone to damp problems.

In addition to this, newer properties often have another feature which was only permitted after a law Change 12 years ago - basements, or caves, as the Portuguese like to call them. They allow natural light to come in, and these rooms are being used as bedrooms, playrooms, cinemas and Bars.

“They are becoming a very popular feature. The demand for such properties was huge, which in turn means that the supply is not. Therefore investors may decide to do plenty of searching for the right deal before they spend their money”.

Silver Coast ‘hot’

When it comes to location, the silver and blue coasts were both listed by the Foreign Property Buyer website as good places to buy: These areas would see major increases in demand and consequently price over the next few years, the site predicted, mainly due to the potential boost to the tourist market the scheduled opening of a new airport at Alcochete is due to bring from 2012. At present, Property Buyer stated, these areas are cheaper than the Algarve, making them an "attractive alternative" for investors.

Finance Daily also listed the Silver Coast as a good location in which to invest, highlighting attributes such as the quality of beaches, food and "authentic" towns. Among these are Azare and Peniche, the latter formerly being an island until siltation turned it into a peninsula with plenty of beaches.

Another factor which could help the growth of this region is the fact that a new motorway has just opened, providing a fast connection to the attractions and culture of Lisbon.

Thus while Spain and France may top the lists of popular destinations for overseas buyers, Portugal may offer more for the discerning investor than some might imagine.