Portugal on track for biggest property price rise in Europe

Strong national and international demand for property coupled with a housing shortage have put Portugal on track for a forecast 9.5 percent rise in property prices this year

The Portuguese real estate market should “remain dynamic over the next few years!

Source: The Portugal News Online  NEWS · 06-09-2018 09:39:00 ·

Strong demand for property in Portugal

Strong national and international demand for property coupled with a housing shortage have put Portugal on track for a forecast 9.5 percent rise in property prices this year, which means Portugal, along with Ireland, will be the European country with the sharpest increase in real estate prices, among the 10 countries analysed by the US financial rating agency S&P.

Portugal on track for biggest property price rise in Europe

This forecast, according to a piece by business and economy site Economia Online, is made in the ‘Europe’s Housing Market’ report published on Monday by S&P.

In the report, the agency analyses real estate price developments in Belgium, France, Germany, Ireland, Italy, the Netherlands, Portugal, Spain, Switzerland and the United Kingdom.

S&P predicts only in the UK will prices remain unchanged this year, with increases in all other cases; up until 2021, Portugal will remain among the countries with the highest increases.

As a result of strong demand, both domestic and international, and supply shortages, prices are expected to increase by 9.5 percent this year, slowing down to seven percent in 2019, six percent in 2020 and 5 percent in 2021. This, after last year, having already increased by 10.5 percent, and another 7.7 percent in 2016.

The Portuguese property market “remains affordable”

Nonetheless, S&P believes that the Portuguese market “remains affordable”, with “a price-earnings ratio still seven percent below the long-term average”.

In any case, S&P points out, “limited supply coupled with strong domestic and external demand is fuelling house price inflation”.

Bolstering this demand is “robust economic growth, job creation and low interest rates” as well as falling unemployment and “special incentives” such as the granting of gold visas and the programme for non-residents.

In this context, the agency anticipates that Portugal’s economic growth will remain “solid” this year, despite a slowdown compared to 2017, pointing to an increase of 2.3 percent of GDP.

Thus, the Portuguese real estate market should “remain dynamic over the next few years, supported by job creation and increased incomes, as well as by external demand”, S&P concluded.

The gap between supply and demand is also expected to continue over the next few years. This is because the number of properties under construction is increasing, but still small, so it will likely not keep pace with the growth of demand.

A few Interesting facts about Portugal!

Portugal is well ranked of countries that best know English as a second language. Portugal comes in first place in Southern Europe and 18th worldwide

Portugal is well classified in the ranking of countries that best know English as a second language

Portuguese are the best English speakers in southern Europe

With tourism reaching peaks of demand from the all four corners of the world, it is not surprising that Portugal is well classified in the ranking of countries that best know English as a second language. According to the English Proficiency Index prepared by Education First, Portugal comes in first place in Southern Europe and 18th worldwide, set at the “High” level of knowledge of the English language.

Tourism weight in economy increases 47% in eight years

According to data from the National Statistics Institute (INE), holidaymakers spent more than €23 billion in Portugal in 2016. Over 28 million visitors entered the country. The number of overnight stays exceeded 144 million. Tourism is growing four times faster than the rest of the Portuguese economy and represents 7% of the gross domestic product.

Lisbon and Porto among the most popular European tourist destinations

Lisbon was the fifth most popular destination for European holidaymakers in 2017, registering a 17% jump when compared to the year before. Porto came in ninth place, 12% above 2016. Registering a 24% increase, London was the first choice for European tourists, followed by Barcelona, Mallorca and Paris.

Source – Nalle.pt

Strange Aloe type plant near the Villa

In the small lane that leads down to our villa this Aloe type plant is just growing wild at the side of the road. We had never noticed a plant growing there but now it is flowering it is very noticeable, the flowers are opening up from the bottom a few more inches every day. To give a perspective the flowering part is about 6-8 foot long.

We suspect that a seed has been dropped by a bird and taken root. We have not seen one like this on our travels  in Portugal or Spain so wonder if it has come from Morocco and the Sahara. If any one knows more about this mysterious plant please let me know.

The trees in the back ground, by the way, are Cork Oaks. The cork has been stripped off part way up the trunk. When the cork has been stripped the trunk underneath is dark orange but turns black after 6 months or so. The cork will grow back and be ready for stripping again after a minimum of  9 years.

Where is the cheapest place in Portugal to live on a pension?

Portugal has to be one of the most affordable countries in Europe in which to live.

Anywhere away from cities and industry. Small villages and towns that are a few hours drive from major cities will be the cheapest places to live.

Property prices and property taxes in small villages will be low and the cost of food if bought at the local markets low too. Buy what is in season. You may have to make a longer journey now and then to a larger town to stock up on certain items and fill your car up with cheaper gas at one of the supermarkets.Property for sale

Where?

Alentejo villages would be a good starting point, or any village in the North of Portugal, just stay away from the larger towns and cities. If you prefer a warmer climate in winter then the Algarve would be suitable but stay away from the coast and look inland, have a look at places like Alcoutim, Almodovar, Salir, Alte, Ourique, Sao Marcos da Serra, Alferce, Monchique, Marmelete, Aljezur, Rogil, all are within striking distance of larger towns and airports but are clear of industry and heavy tourism, check out this site MonchiquePortugal.info

Shops in MonchiqueStretch your Euros

If you are prepared to live sensibly, grow some of your own fruit and veg, have a few chickens, do without too many trappings you can make a pension go a long way. Much depends on where your pension comes from of course. The one thing that can be costly here are cars both new and used. If you have a fairly new and reliable left hand drive to bring with you then consider doing so and get it “matriculated” here. Portugal has to be one of the most affordable countries in Europe in which to live.

Read Nigel‘s answer to Where is the cheapest place in Portugal to live on a pension? on Quora

The Most Affordable Sunshine in Europe!

Source: Telegraph.co.uk

The vote for Brexit hit British travelers in the wallet, but trips to Portugal soften the blow. Yes, it takes the euro, but the country remains one of the most affordable destinations on the Continent, offering visitors the elegance of Western Europe at Eastern European prices. In fact, in its 2017 Holiday Money Report, the Post Office Travel Money declared The Algarve the cheapest of 44 European destinations. Families can find particular savings in the shoulder seasons, at October half term, for example, when family hotels still have great sports and kids’ clubs, but at lower prices than in the summer months. Why not check out our rates: Villas in Algarve for rent (rates)

Portugal is officially one of the sunniest countries in the world, and at the height of the summer visitors to the Algarve can expect temperatures of 28C and 11 hours of sunshine daily (and about one day per month of rain).

Even if you go for October half term, you are likely to find appealing weather: 22C, with seven hours of sun daily (which beats the 14C and three hours of sunshine you’ll find in Blighty at the same time of year).

May half term is an even better bet: the crowds are fewer, you can expect temperatures of around 25C, and 10 hours of sunshine each day, with little chance of rain. Check out  Algarve weather temperatures and rainfall statistics.

Holiday makers with children are pretty much restricted to school holidays, however the rest of us can pick and choose when we want to go on vacation, often beating the hottest weather in the summer months and the crowds as well. Have a look at our availability and see if there are dates that night suit you. Also look at our special offers you might be in for a bargain.

Travel Magazine

Portugal is the Worlds 3rd Safest Country

Portugal has meanwhile also been rated as one of the top three expat destinations in the world when it comes to the general living experience in the country.

The most peaceful country in the world is currently Iceland followed by New Zealand and then Portugal.

Portugal is becoming one of the most desirable countries in which to have a vacation , holiday home or retire to, safety plays an important role in most holiday makers choice of destination.

The Global Peace Index ranking at the start of autumn 2017 rates Portugal as the third safest country in the world, climbing up from it’s position of 5th in 2016. The Global Peace Index ranks 163 countries according to their domestic and international conflicts, safety and security and degree of militarisation. The most peaceful country in the world is currently Iceland followed by New Zealand and then Portugal. General crime in Portugal has dropped by 21 percent during the last 10 years while serious crimes are down 32 percent.

West coast 1

Top expat destination

Portugal has meanwhile also been rated as one of the top three expat destinations in the world when it comes to the general living experience in the country. (Yougov HSBC Expat, The News)

Come and see for yourself, you will not be disappointed the Algarve has a perfect climate and if you are looking for the perfect place to stay then look no further our own villa rental in Monchique would give you a perfect base to explore the Western Algarve.

Where is Home?

Living in both Canada and Portugal

Our villa in Monchique is available from mid March to end of November each year during which time we live in Canada. One of the most common questions we get asked is where do we consider our “Home” to be? And, it is a difficult question to answer. When we first started commuting between Canada and Portugal I would say that our boots were still in Portugal but lately Bev would certainly sway towards Canada as we spend the largest part of the year here. For me though, having been a nomad all my life I cannot say either way, apart from a week of jet lag at either end I soon settle into whichever home as if I had never been away.Float Plane over Nanaimo

We love both countries, and count our blessings every day. The only thing the two countries have in common is that the people are friendly and they are both very safe places to live, in both, if we go out and realise we forgot to lock the front door it is not an issue. Otherwise the two countries are about as diverse as you can get, everything from culture to food.

Getting into the Mode!

When in Portugal we have to get into “Portuguese mode”, that is: language, cars with clutches, (you should see our kangaroo stops), bureaucracy, bank and post office short opening times, cheap groceries and wine, wall to wall sunshine most days, awesome restaurant food,  and Portuguese drivers! In Canada mode, burgers, pot lucks, making our own wine, cheap gas (petrol), language, yes language, Canadians speak English but so many words are different that sometimes folks don’t have a clue what we are talking about!Our resident orphaned deer

Pets

One disadvantage of living in two countries is not being able to have pets. We would love to have a dog or two but what do you do with them when you are away for so long, to board them in kennels would not be fair so we have to content ourselves with “Bambi” our resident orphaned deer, here he is waiting for an apple!

Here is a proud mother with twins born in our garden this spring.Mom with twins

Stop overs

Traveling between the two countries creates opportunities as far as flights are concerned we have discovered that going via different places each time gives us an excuse to have a short stop over. This year we had a couple of weeks exploring Yorkshire, last year Southern and Northern Ireland and next year Southern Ireland again, you just have to taste those Irish breakfasts!

In conclusion we love both places, there are so many positive things about both and what few negatives may exist from time to time are insignificant.