Status of the Algarve Real Estate Property Market

Prior to the financial crisis which hit the real estate industry the most, buying properties in Algarve were common among international purchasers. This is because of the tax advantages that they were entitled to by buying through an offshore company.

However, a law implemented in 2004 ceased the tax advantages - so when an offshore company purchases a real estate property in Algarve, taxes will be applicable. Aside from Algarve, other regions and cities in Portugal will apply the same set of laws for anyone who wishes to purchase either a residential or a commercial real estate property.

Keeping Up with the Local Real Estate Market in Algarve

This is not to say that investing your money in a real estate property in Algarve, like Algarve villas, is not a profitable proposition anymore. In fact, the opposite is true. Let's say that you invested in a piece of residential real estate property or a villa in Algarve. Even if the prices are a bit steeper as compared to what they were a few years ago, the investment will still increase in value.

Should you decide to resell the property that you bought in six months or after a year, you can still generate a significant profit of anywhere from 15 to 20% of the original value. You will also not be lacking in potential buyers, because both foreign and local investors continuously seek for real estate properties to buy in the top tourist attraction of Portugal which is Algarve.

Additional Benefits of Purchasing Property like a Villa in Algarve

Currently, real estate properties - both commercial and residential - are skyrocketing in value in this area. Also, realtors, builders and investors are maximizing their earning potential by investing in real estate properties and development projects in Algarve.

So what are the other reasons why it pays to buy real estate property in Algarve? Aside from the continuously increasing value of real estate properties and the always-present prospective buyers that you can have, here are additional reasons why it pays to invest in this lovely regional coast:

   1. The real estate properties in Algarve are marketed internationally. This region in the southernmost part of Portugal is a favorite of foreign investors because Algarve is being marketed internationally. As mentioned earlier, it is reasonable for you to expect a return of investment along with a sizeable profit if you buy a property and resell it six months or after a year or two down the line.

   2. Algarve as a region is an ideal prospect for real estate investors because of its location and the wonderful tourist attractions that it has to offer. The old inner city of Lagos and the red stone castle in Silves are just some of the most popular tourist attractions in the city.

   3. Algarve is a region which is continuously being developed to attract more and more investors to the area. The local government is overseeing the construction of better infrastructures, road facilities, building of urban and shopping centers and a host of accommodation options to make staying in Algarve more worthwhile for visitors.

   4. The local real estate market in Algarve is solid. For the past five years, the real estate market in Algarve has remained solid as it continuously attracts both local and foreign investors. With all these reasons and more, there really is no reason for any investors to say no to the prospect of putting their money down on a real estate property in Algarve.