Spain and portugal enjoy house price rise

Anocheche, Costa del Sol Photo: Antonio

Property prices edged up 0.8 per cent in Q2 2014, according to Eurostat, its first annual house price in six years. House prices rose by 0.9 per cent in the Eurozone and by 1.4 per cent in the whole of the EU in the second quarter of 2014, compared with the first quarter. Compared to the same period last year, prices in the EU grew by an encouraging 1.7 per cent.

Ireland's recovering housing market also enjoyed improving values, but Portugal led the Pack, with a healthy jump in values of 5.9 per cent year-on-year.

Angelos Koutsoudes, Head of the Overseas Guides Company, comments: "Property there has represented excellent value for money for the past few years, and the price rises represent the return of demand to the Algarve. Being smaller than other European second home markets, such as France and Spain, arguably means it has been faster to turn around. Enquiries at our PortugalBuyingGuide.com site have surged in 2014 and our new office in Vilamoura is well placed to service any revival."

"Portugal’s non-habitual residents tax - which makes it a cheaper place to live for wealthier foreigners, including pensioners, than other European countries - will be helping to stimulate the market," Koutsoudes adds.

"Not forgetting, Portugal was one of the first countries to introduce a Golden Visa for foreigners outside of the EU, so perhaps these two measures are beginning to effect the market there."