Golf real estate
According to the latest report on the most popular points in the global real estate market, Global Property Hotspots Report, prepared by HiFX currency experts, the demand for Algarve real estate is quite stable, especially from French, Spanish and British investors. "The growth of the Portuguese real estate market is largely driven by demand from golf enthusiasts," says Mark Bodega of HiFX. Golf has an effect in the Algarve similar to the one it had in Spain, on the Costa del Sol. And all thanks to the emergence of the prestigious "golden triangle", consisting of three first–class golf resorts - Quinta do Lago, Vale do Lobo and Vila Sol. There are more and more mansions worth more than 1 million euros, and rental income is high and stable here.
No less than the magnificent golf courses, investors are attracted by the good climate and stable economy of Portugal. There are a lot of offers, new fields and complexes arise almost every month, so the only difficulty is to decide where to make a purchase. To find the answer to this question, you should decide exactly what you expect from Portuguese real estate.
If this is golf and recreation, then you should pay attention to the last two complexes from Oceanico. Five-star golf resort Amendoeira Golf Resort near the town of Silves, 35 min. from Faro Airport, now under construction. It includes two first-class golf courses designed by famous players, a building given to the Portuguese Professional Golf Academy (PGA), a clubhouse, a football field, tennis courts and outdoor pools. Oceanico has recently acquired five golf courses in the popular resort of Vilamora and provides discounts on green fee to residents of any of the complexes owned by the company. Fractions for a quarter of a year in a mansion overlooking the golf courses or the Monchique mountains can already be purchased at prices from 160,000 to 280,000 euros. Fractions in the apartments are offered at a price of 160,000 euros. Since May 2008, it is planned to put up for sale the entire objects, their cost will range from 470,000 euros for a two-bedroom apartment to 1.85 million euros for a four-bedroom mansion. Offering fractions in the Stepping Stones complex, Oceanico undertakes to pay all taxes and registration fees, local fees for three years after completion, condominium fees, cathedrals for management, and buyers of facilities in the Amendoeira complex are paid and green fee in seven fields for the first three years.
It is also worth paying attention to the Vilamora Golf & Garden Resort from Oceanico. Located on 68 hectares, just 20 minutes away. A short drive from Faro Airport, this complex includes luxury apartments and mansions among carefully designed gardens. Prices range from 490,000 euros for a two-bedroom apartment and 800,000 euros for one of two adjacent three-bedroom mansions to 2.5 million euros for a five-bedroom mansion. Construction is scheduled for early 2008.
The Quiet West
For those who prefer to live in a much quieter part of the Algarve, the best solution will be the new Martinhal complex on the west coast, in an area that has preserved its original national charm. The complex is located just 75 minutes away. drive from Faro, near the historic town of Sagres and the wild beaches of the Atlantic. The climate here is temperate, but windy, and the sea is often choppy. The construction will take place in 2 phases. The first, almost completed phase includes the construction of townhouses and villas. The construction in the second phase will be led by the design company Conran & Partners and the Lisbon group Arquitectura SA – the project includes a five-star hotel with 36 rooms, 129 townhouses and apartments with guaranteed rental income for 10 years. The complex will have outdoor and indoor pools, tennis courts, a kindergarten, a business center, game rooms and shops. The cost of a two–bedroom cottage with a garden is 550,000 euros, a three–bedroom house with a view of the bay is about 640,000 euros. In the first phase, there is still no maintenance fee (it will appear when the complex is completed), the fee for management services is 25% – developers will manage the lease until the construction of the hotel is completed and the number of tenants increases. The net rental income is estimated at 4-7%.
A little to the west, an hour from Faro Airport, is the fishing village of Lagos, where a new low-density residential complex has recently appeared. Winkworth sells one–bedroom apartments for 120,000 euros, two–bedroom apartments for 170,000 euros and three-bedroom apartments with sea views for 335,000 euros. Renting a two-bedroom apartment in a yacht harbor in Lagos during the high season (10-12 weeks a year) can bring about 930 euros per week. The facilities in the Jardim da Meia Praia resort complex from Oceanico have already been sold, but are being resold from time to time, while there are several new facilities in the Estrela da Luz and Praia da Luz complexes near Lagos: studio apartment, one-bedroom apartments and two-bedroom luxury apartments. Prices range from 185,000 to 350,000 euros.
According to Simon Burgess, director of Oceanico, the growth in the value of real estate is currently going quite fast. "During the 24 months during which construction was underway, the cost of the Estrela da Luz complex increased by 25%, while during the construction of another complex – Amendoeira Golf Resort – the cost of real estate increased by 15% already during the first phase, the completion of which is scheduled for 2008," he says.
Irishmen Don and Julia Kingston visited the Algarve 21 years ago, and they liked it so much that they recently bought a two-bedroom penthouse in Estrela da Luz in the region for about 330,000 euros and apartments at the Belmar Spa Resort for 340,000 euros. The couple comes here 6-7 times a year, and during the rest of the time rents out their properties, the income from which is about 20,000 euros per year, despite the fact that the season lasts about 10 months.
The market segment that is practically free and suitable for investment is ecological complexes. The creators of Alma Verde, a 36–hectare complex, did not forget about eco–technologies when designing facilities. At 10 min. From Lagos, everything is ready for the construction of 130 mansions, 28 townhouses and 48 apartments, as well as the Elixir Spa Resort, which will include spa, wellness centers and 70 additional apartments for spa fans. A note of environmental friendliness is given to these buildings by the cooling system of the house, built into each object. The system is based on the difference between ground and underground temperatures: the air is cooled in pipes laid underground. Instead of concrete and hollow bricks typical of the Algarve, sun-dried bricks formed on the spot will be used in the construction of buildings for better heat conduction, and external insulation will prevent overheating and hypothermia. Ready-made and under construction mansions have already been put up for sale at a price of 500,000-760,000 euros, rental management services are offered.
The East is not far behind
The eastern part of the Algarve also deserves close attention. The Monte Rei complex, covering more than 400 hectares on the coast between the towns of Vila Real de Santo Antonio and Tavira, offers two golf courses from Jack Nicklaus against the backdrop of the Sierra do Calderao mountains. Upon completion, a tennis complex, a spa and a horse riding center will open here, as well as the Beach Club located on the ocean. You can buy objects under construction now, prices for villas and apartments range from 860,000 to 1.8 million euros. Mario Condeso, commercial director of the Monte Rei complex, says that it is better to buy real estate on this eastern side of the Algarve: "The Western Algarve, thanks to its first-class courses, has quickly become a mecca for golf lovers, but the eastern part of the province is relatively undeveloped, and visitors can see the "real" Portugal."
The new luxury Palmeiras Resort near Tavira from the international real estate firm Casa Amiga is also located in the eastern part of the Algarve. Residents can enjoy tennis courts, outdoor pools, a yacht school, beach volleyball courts, as well as a five–star exclusive hotel. Winkworth offers real estate under construction at prices starting from 162,000 euros. When calculating expenses, you should add IMT (transfer of ownership tax), stamp duty, notary fee and land registration tax to the purchase price. For example, at a purchase price of 350,000 euros, the costs will be approximately as follows: IMT – about 17,769 euros; stamp duty – 2,800 euros; notary fee – 190 euros;land registration costs 205 euros, which will give a total of about 21,000 euros. The income from this property, when sold after construction, will amount to 25% of the cost.