Portugal on track for biggest property price rise in Europe

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

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.
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.

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It looks like a another year where we will be sold out, we just have a few weeks left.

Have a look at or availability and special offers page. Thank you.

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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.

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

First blog post

This is the post excerpt.

I thought it high time to start a Villa Vida Nova Blog

There are plenty of subjects to chat about and I would like to encourage readers to join in. Owning a villa rental in Portugal leaves it open to talk about everything related to the location, the people, the culture, the geography, villa and property ownership, the owners themselves, vacationers and potential property owners too. Tourism in the Algarve but farther afield in the rest of Portugal and Spain.

These are just some of the subjects that will be covered if you have any others that should be included please let me know just shoot me an email.

  • About the owners, who we are, what we do, where we live when not at the villa, what interests keep us entertained…………..
  • Exploring the Algarve, Portugal and Spain. How to do this on different budgets, off the beaten path, away from tourist hotspots……….
  • About buying property in Portugal, about renting out your property, how successful it can be, how to go about it…………
  • Tips about getting the best value vacations, car rental, flights……………………….
  • Food and wine, the best restaurants and the different regional foods………………………
  • Why Portugal, why is it one of the most sought after vacation and retirement destinations……………….