A recent report issued by the UN tells a story that gives background to what our local developers in Portugal have known for years. External development investors who are considering this country should take note of this story.

Portugal has been hailed as the world’s best at welcoming and integrating legal immigrants. This is a highly significant advantage in the second-home and retirement market and our experience is that is an important decision factor in choosing where to buy.

The UN Office for the Human Development study looked at access to education, health, the right to vote, labour rights, social security and assistance for families – all of which showed that Portugal was a generous country compared with other, richer Western European neighbours.

“Portuguese initiatives for immigrant integration are in the vanguard of the world,” said Isabel Pereira, a political specialist working at the UN Office for the Human Development Report.

These findings reflect our experience inasmuch as foreign property investors in Portugal, and certainly here in Algarve, are generally very satisfied with their acquisition and thus their decision to buy here. That satisfaction derives from a number of factors, but certainly being made to feel more welcome than in many alternative destinations is one of them.

We believe that a moment of opportunity for investors has arisen in Portugal in general and Algarve in particular. With money supply tight, developers, hoteliers and other companies with good assets but weak reserves are looking for solutions. These can include parting with projects they would normally have kept. This has therefore opened up the market to fresh investment.

The economic recession with the consequent drop in tourist numbers has impacted destinations worldwide, but some have suffered less than others. The Algarve is one which has weathered the storm fairly well.

Visitor numbers are down but thanks to strong domestic presence during the summer when Portuguese took holidays in their homeland rather than go abroad, the drop has not been significant.

Tourist accommodation occupancy is down far less than originally feared. Significantly, the weakest performance has been shown by the least professional providers of product and services.

This confirms a trend displayed over the past thirty years as Algarve has steadily developed its tourism market. It has a track record of consistent and steady growth without the wide fluctuations suffered by many rival destinations. Being part of the Euro zone means security and wealth preservation through value stability to investors and property owners.

The Algarve has consolidated its position as a desirable destination with quality accommodation and attractions, a well-developed infrastructure and good access. The international airport at Faro is now being served by scheduled flights from over 55 European cities and charter flights from many more. Algarve’s proximity of 2 to 3 hours from its main markets has shown to be a factor of strength through good and bad times.

With sunshine year round to complement its beaches, golf and hospitality, the Algarve has long term growth potential as a consolidated destination.  However, development has been constantly reduced over the last 20 years and some 70% of the Algarve coastline has been declared nature reserve. At the same time, the supply of prime land resource for development has been greatly reduced. Future demand must drive investment values upwards.

Constantino Jordan