We are now one month into 2010, and we are all wondering what this year has in store for the Algarve Property Market. Whilst it is not much to go by, the first month of the year has shown many positive signs, with enquiry levels increasing, and many new potential purchasers expressing an interest in property here.
Of course, we are still seeing some of the problems left over from the recent market fluctuations. the main one being a lack of research leading to both vendors and purchasers having unrealistic expectations. As we have reinforced throughout last year, there are some "bargains" around, but these are either in the over-supplied part of the market (primarily apartments and townhouses) or, in isolated cases, where individual owners have a need or desire to sell quickly. A new factor that we have seen this year is vendors wishing to dispose of a property in the Algarve at a reduced price, as the funds they receive can be invested in weaker housing markets where there are some very attractive deals on offer. Even though they are receiving less than they would have expected, it will buy them more in another market.
So, what do we think will happen throughout this year, and what do we hope will happen?
Developers who have surplus stock of new build properties have already been reacting to the changing market, in a number of different ways, and there is no doubt this will continue. Many added extras such as furniture packages, air conditioning etc. are being included to tempt buyers. What has been interesting is the way that many of the developers who either have a short term view, or who are relying on volume of sales in a busy market, have simply stopped construction. It does make potential clients wonder if the properties they are selling have good residual value or not. Contrast this with those developers who clearly have confidence on their product, and who are carrying on construction and marketing at a similar pace to the last few years.
We do not believe we will see many more stopped developments, but until this sector of the market picks up, we are sure many developers will slow down their construction schedule. For those that are able to continue their investments in marketing, this should make them all the more visible as fewer of their competitors are advertising.
With regard to this sector of the market, our prediction is that the pace of construction will continue, albeit slowly, and that the smarter developers will continue to innovate and offer incentives. At the bottom end of this market, it will remain price driven and those offering attractive discounts will be able to make sales.
As we move into the middle and upper segments of the market, the story changes somewhat (for a full explanation, please refer to our Property Market Report 2009 http://www.azul-properties.com/azul-properties/news.asp). As the balance of supply and demand tips, the market is more stable. When you combine this with the more reasonable attitudes being displayed by both vendors and purchasers, these sectors of the market should behave in a predictable manner.
Our prediction is that whilst we do not expect to see much growth in these sectors, we expect to see prices holding steady, with the odd "bargain" where the owner has personal reasons for wishing to sell quickly.
Other factors
Despite the doom and gloom that has been lingering recently, there are still some major infrastructure projects, and developments that we hope to see progress during this year. Carefully controlled and planned development is essential if the Algarve is to continue to develop it´s reputation as a quality destination.
Quinta da Ombria, whilst it has been the subject of great national (and international) debate is one of those. We hope to see this project advancing this year, as it will open up the interior ofLoulé council, an area which really needs a headline project to attract people.
The major road works around Loulé are continuing, and once the circular is complete it will allow more civilised access around the city.
The current proposals for a new Ikea commercial centre have caused great local and political debate, with two different locations being discussed. We hope that the various entities involved can come to an agreement in a short space of time, whilst considering all the social, geographical and practical issues involved, and secure this important project for the council ofLoulé.
Bank lending is a key driver for the property market, and we are now seeing the banks keen to lend again, albeit with conservative lending controls. Whilst this conservatism makes the short term market more difficult, it gives good long term stability, something which is extremely important, as we have seen in the last two years.
Conclusions
We have compared the property market in the Algarve before to a tortoise, making slow, steady progress, but always going forward and getting there in the end. 2010 will be another year of slow progress, and some sectors of the market will see little, if any, substantial increases in the volume of properties sold. The continual search for that dream Algarve property goes on for many people, and as the Algarve has proved itself to be one of the most stable European property markets, many people will return to what they feel comfortable with, rather than risking purchasing in one of the new, more risky markets.
Algarve Property Market Report-2009
Algarve Property Market Report-2009
Introduction There is no doubt that 2009, like it´s sibling 2008, was a strange year in the property market in the Algarve. On reflection, one of the main issues was the fact that no-one could agree what the market was doing, when and why. With the benefit of hindsight we can review the facts, and consider what actually happened, from our (first hand) viewpoint.
One of the key problems is information. On one hand accurate historical date is very hard to obtain in Portugal, as, until recently, many of the prices registered for the sale of properties were inaccurate. Add to this the fact that many offshore property transfers were not even registered here, and it can be seen that the data available was worthless.
The other problem with information was that there was simply too much of it, and much of it inaccurate or misleading. With the average person receiving information from social media sources such as Digg, Twitter and Facebook, plus the printed media and the internet based information resources, TV and radio, it can be seen that it is easy to achieve information overload. The weather forecast is a good illustration of the problem. If I want to know what the weather will be like in Portugal, I can follow a weather feed on Twitter, look at the BBC website, refer to meteo.pt, listen to the local radio and I will probably look at an international site such as weather.com. I will be faced with different, sometimes conflicting information from each of these sources, so I have to assess and filter this to establish which is correct. If out of these 5 sources, 3 say it is going to snow tomorrow, I may believe them, even though I think it is impossible.
Because the credit crunch was such big news, consumers had it rammed down their throat, morning, noon and night. In a country such as Portugal, where small stories such as a bank robbery that netted €1.000 are headline news, big stories are incessantly repeated and debated. So, we all became obsessed with the credit crunch.
There is no denying that the property market here was affected, but we need to look closely at how it was affected, and, more importantly, why? Within Portugal, there are many unique areas of real estate. The Algarve is a good example of this, as are the big metropolitan centres such as Lisbon and Porto. The Alentejo also has its own sub-market, but for different reasons. This distinction is important, as the property market was affected in varying ways, depending on the geographical area, and type of property.
If we consider the Algarve, and simplify things somewhat, we can divide the market up into sections, as follows:
* Primary habitation, normally purpose built apartments * Habitation with a related commercial activity (e.g. agriculture) * Holiday accommodation for the "bulk" market, apartments and townhouses, normally in coastal areas within closed condominiums * Second homes, either in urban areas or rural * Luxury properties
Each sector of the market has behaved differently, and a large proportion of this behaviour is due to basic economic principles. In two particular sectors of the market, where volume of sales has been traditionally high, and supply and demand have been well balanced previously, the effects of the slow market have been felt hard. These sectors are the bulk holiday accommodation, and primary habitation parts of the market.
As demand has been reduced by the well documented effects of the recent years economic troubles, over supply quickly became a reality. In these parts of the market (and any others where supply vastly exceeds demand) the market was, and still is, weak. The reluctance of banks to lend to clients in these sectors, or at least to lend to the level they had previously, compounded the problem.
If we consider the second home market, the situation is, not surprisingly, different. The supply of this type of property is restricted, as a result of a number of factors. Building is well controlled now in Portugal, and the process of getting a construction project is slow. Clients for this type of house tend to have very particular requirements, reducing the suitable number of properties available. Add these factors together, and it is clear that the market will never be flooded at any one time with new properties, thus controlling the supply.
Even during these leaner times, there is continued demand for this type of property (albeit at a lower level than previous years). The net result is that there are few bargains in this sector of the market. Of course, some owners have to sell as their personal situation dictates this, but in our experience these are not the norm. The general tendency is to be more flexible, and external factors such as the exchange rate do play a part.
In summary, we have a sub-market (the Algarve), which behaves differently to the rest of the country, and sectors within this market that are also affected in different ways.
Some facts As we have mentioned, facts are few and far between in relation to the Portuguese property market, but we do have some information available.
* Average house prices have shown a positive trend throughout 2009 * The average bank evaluation of a property was higher at the end of the third quarter of 2009, than at the start of 2009 * Bank evaluations have returned to a similar value seen in 2004 * Bank evaluations peaked at around 1.250€/m2 in 2007, and they are currently around 1.160€/m2, a difference of 7%
With the caveat that this is an overview of the entire country, it seems to indicate a stable, slow moving market that has regressed to previous levels, but not in an overly dramatic way. Compare this to countries such as Latvia and Lithuania (which were promoted as fantastic investments recently) where prices have dropped up to 65% in the last 2 years, and this reinforces the point. (Info here: http://www.globalpropertyguide.com/real-estate-house-prices/L)
We should also consider the effect the exchange rate has had on the Algarve property market during 2009. Buyers from the UK still make up the majority of purchasers here, so this is a key factor.
At the time of writing the exchange rate is around 1.12, compared to 1.06 at the end of 2008, a difference of some 5%. This does make a difference, and in many cases those returning to the UK are factoring in the increased buying power their euros currently have in the UK, and adjusting the prices of their properties accordingly. It should be emphasised that this is only relevant to a very small sector of the market
Summary: What really happened?
To conclude, we can say the following:
* Sectors of the property market where supply and demand was unbalanced as a result of the economic climate have suffered the most. * External factors such as the exchange rate, and banks lending policies have reduced market confidence overall * Some sectors of the market have fared better than others, and whilst there are opportunities to purchase property at reduced prices in these sectors, it is not the norm * The high land cost, restrictive building legislation and relatively high construction costs have combined to ensure strong residual value in many types of property
Importantly, we can see that the Algarve has continued it´s tendency to be one of the tortoises within the European property market. Slow, steady growth has resulted in a much slower decline than in some of the hares in Europe, who have seen drastic declines.
In the next part of this article, we will look forward to 2010, and predict what we think the next 12 months has in store for the Algarve.
Property Market Comments-October 2009
Despite the unusually high temperatures and mild, dry weather we have been enjoying recently, summer is now far behind and Christmas is already looming. At this time of year, we are seeing a number of agreed sales that need to be closed before December (as our financial year generally runs in parallel with the calendar year). Many clients enquiring now are already looking to a purchase in the New Year, so we expect the next few months to be quieter. However, this year has produced many surprises, so we have learnt not to try to predict too much based on previous years experiences.
The question on everyone's lips is "What is happening in the market?" Whilst there are some general trends, it is extremely hard to give a definite answer. One of the key factors that contributes towards a market "recovery" is the desire of the banks to lend, with flexible and reasonable conditions. The more open banks are now allowing higher LTV´s (Loan to Value) and mortgages with initial fixed repayments are also available. It is no coincidence, of course, that the Banks are making record profits on mortgages at present here, but the provision of credit is essential for the property market in the Algarve. The reduction in interest rates throughout this year has made mortgages in Portugal good value.
One thing that can be said with some certainty, is that the property market here has suffered throughout recent times, but to a much lesser effect than many other countries, such as our neighbours in Spain. The market here remains cautious, with hopes for a steady recovery.
The exchange rate (€ to £), has slightly increased during the last month, and at the time of writing is at the highest level (circa 1.11) since the middle of September (source: www.xe.com). The exchange rate has an effect on both purchasers funding a property in euros and vendors changing euros to sterling.
Market Report-September 2009
As the summer season draws to a close, now seems like a good time to review the ups and downs of the property market and also look at how the Algarve is developing and evolving.
Summer 2009 The summer season is important here for many reasons, primarily for the amount of money that it brings in to the region. There is also the important secondary effect it produces, of raising peoples awareness of the region and it´s benefits. Whilst no real statistics are available, the "feeling" is that the summer season was short and intense. Whilst this is good news in some ways, if the Algarve is to succeed in the future as a quality destination, year-round tourism has to be developed.
Property-up, down or neither? The million euro question is "What is going on in the Algarve property market?". If a truthful answer is given, then you have to consider that there are many pockets of activity within the market, and each pocket has reacted differently in reaction to the changing economic conditions we have been experiencing.
To get a general idea, we can look at officially collected statistics, namely average prices of housing, and bank valuation rates. The situation as of the first quarter 2009 is well illustrated here http://www.globalpropertyguide.com/real-estate-house-prices/P#portugal . It is interesting to see that (marginal) positive movement of both prices and valuations was showing in the first quarter. Furthermore, according to INE (Portugal´s national institute of statistics), bank valuations have increased 1,7% in the second quarter of 2009. These are in no way figures to get excited about, but on a country wide scale there are small signs that the negativity associated with the property market recently may be changing. The economy in Portugal is one of Europe´s slowest, and any recovery will be a slow, steady one.
Of course, we have to look at how these statistics relate to the real world. We are experiencing a levelling off of the market here, where vendors understand that their property is not gaining value and will not appreciate to any noticeable degree in the immediate future. Purchasers are also realising that the Algarve has not suffered the drops experienced by other markets (according to globalpropertyguide.com apartments in Latvia have dropped in value by 50% over the last year), and as such, bargains are few and far between. Of course, there are exceptions to both rules, and any changing market presents some opportunities.
If we had to establish a general trend, it would be for sale prices to be at their most flexible in recent times, and for those purchasers who have strong positions (cash buyers, able to complete quickly and simply) being able to negotiate to their advantage. Whilst we are selling properties at lower prices than in recent times, there is a limit, and the intrinsic value of a property here has reinforced the market.
As we have said throughout this year, properties that are selling are those that are in short supply, of good quality and are thus desirable. At the weaker end of the market are the oversupplied properties that have no real distinguishing features. Fortunately, developers of condominiums are seeing that quality, value for money and additional facilities are the only ways to attract prospective purchasers and ensure strong residual values.
It has never been more important to ensure a property offered for sale is in tip-top condition, both physically and legally.
The future One of the great successes of this year is the many cultural events the Algarve has to offer, which are getting more popular every year. These range from fairly low key laid back affairs such as the sand sculptures at Silves (www.fiesa.org) to concerts with international artists (Joss Stone in Loulé earlier this year) and right up to major events such as Festival Med (www.festivalmed.com.pt) and Noite Branca (http://www.noitebranca.com/). There have also been sporting events such as the Vale do Lobo tennis masters, (http://www.atpchampionstour.com/algarve.html) won by Greg Rusedski this year. These are important as they help to distinguish the Algarve from other destinations, and offer a wider range of entertainment which attracts a different type of holidaymaker. It is extremely pleasing to see that these events are both increasing in number and quality every year.
Future development of the region is key, and we must have the right type of development. There is no room here for the "build em high and sell them cheap" tourist developments, and it seems that the regional and government authorities realise this. The opening up of the interior areas of the Algarve is fundamental, and will spread the tourism load across larger parts of the region, rather than all the tourism revenue being focused on coastal areas. The golf course and associated accommodation at Quinta da Ombria, in Querença, Loulé is an example of the type of project needed to rejuvenate the interior.
Variation in the future tourism market will also be of paramount importance, and in particular we need to attract people to the Algarve all year round. The racetrack at Portimão is already bringing a totally new type of person here, and has a wide range of events, 12 months of the year. Vilamoura will soon be home to a new marina, with over 300 berths, as part of the "Cidade Lacustre" project, currently being promoted by Lusort. Once again, this introduces a whole new range of people to the Algarve.
The Algarve is destined to create it´s own place in the market, and will not have to compete with the emerging markets of the new EU countries, as it will be in a different class.
Everyone wants to have a crystal ball and see the future, but in this case I think we must look to the past years to get an idea of what is ahead of us. My predictions is that the Algarve property market will see a slow, steady recovery, with no spectacular increases. The focus on quality, diverse tourism and leisure activities will continue, and the Algarve´s appeal will widen to include a larger range of nationalities, age ranges and social classes. One thing is guaranteed, and that is that nothing happens quickly here, so the tortoise that is the Algarve´s economy will continue to plod along, whilst the hares of the emerging markets (such as Latvia, Estonia and Bulgaria) will be racing to catch up.
Market Commentary-June 2009
The holiday season is now upon us, and this traditionally marks the start of the busiest time of the year in the Algarve. The summer season is always important to the Algarve economy, and never more so than this year. It will be interesting to see how tourist numbers compare to past years, and what effect this has on the economy.
The Algarve´s cultural events programme is in full swing, with the successful Festival Med having finished last week in Loulé. Upcoming events include the Fiesa sand sculpture festival, and many concerts. Full details can be found at www.allgarve.pt .
Whilst the property market is undoubtedly weaker at the moment, it does seem to have settled in different levels. Within the area of the market that is weakest (namely run of the mill properties such as apartments and townhouses), prices have been reduced and constructors are offering incentives to purchase now. As a result of the oversupply in this sector, many developments are being constructed at a slower pace, and fewer new developments are coming on to the market.
As we have said throughout this year, the sectors of the market where it is still relatively difficult to find certain types of property are holding fairly firm. There is a mixture of owners who want to take advantage of the current exchange rate difference to the British pound and/or want to dispose if a property for personal reasons and those who are happy to ride out the current turbulent market, and will not reduce their prices as a result of the current market conditions.
One of the key problems at the moment is the unrealistic expectations of purchasers. Whilst many constructors (with a large stock of properties) are offering substantial discounts, private clients with properties that have solid residual value are not. If you are coming to the Algarve, and want to buy a "bargain" then you need to be very flexible about the type of property you are going to buy. The market here can not be compared to Spain, where there is massive over supply in many parts of the market.
Market Commentary-March 2009
With the start of spring, and the Easter holidays upon us, we are starting to see a difference in the property market here, with enquiries, visits and sales showing positive signs. We have experience of banks lending at the top end of the LTV´s (Loan To Value) as long as purchasers have suitable financial conditions.
There is a continued (and slightly false) expectation by potential purchasers that all property can be snapped up at a bargain price, and vendors will accept very low offers. We are constantly reviewing the properties in our portfolio, to ensure asking prices are kept in line with current market conditions. Prices are holding, although constructors who have large portfolios in the most difficult parts of the market (namely apartments and townhouses) are reducing prices and showing more flexibility.
With the exchange rate to the UK pound remaining weak, we do have cases where owners who wish to return money to the UK will factor this in and accept lower offers whilst this continues. Traditionally the exchange rate strengthens during the summer season, so this situation will not continue for ever.
The introduction of the requirement for energy certificates for all properties sold has been painless and simple, and has had no effect on completions. We have an agreement with a company to provide this service for our clients, and can arrange certification in 4-5 days when necessary.
Algarve property market remains sound
This is the market commentary regarding the credit crunch and how it has affected the Algarve market. This report was written in October 2008.
It is important to remember that living in the Algarve can be akin to living in a bubble. Many momentous events seem to pass us by and we carry on without a care in the world. However, even here all normal topics of conversation have been swamped in recent months by the on-going developments in the global credit crunch. The financial crisis has filtered down and we too are feeling the effects.
There has been much confusion about exactly what the credit crunch is. In very simple terms, it is a reluctance of the banks to lend money. The reasons behind the reluctance or inability of the banks to continue lending is a long and complicated one, but financial institutions have had to adjust their attitudes to risk and reduce their lending accordingly. What seems like a fairly basic issue has had the effect of a financial tidal wave.
The mortgage market in the Algarve has always been very conservative, with risky products such as self-certification mortgages very hard to come by. Mortgages for anything close to 90% of the value of a property are never easy to organise. Mortgages have been mainly granted here on the basis of ability to pay, rather than complicated (and frankly nonsensical) calculations involving multiples of gross salaries and such like. Although it is fair to say that the banks here are now more cautious than they were this time last year, they are certainly more flexible than when I applied for my first mortgage six years ago.
The current problem is more a lack of confidence on the part of potential purchasers, coupled with the natural human tendency to wait and see what everyone else is doing and then follow suit. Whilst there is some logic in this, it never worked very well as a life-plan for lemmings.
In the Algarve marketplace we are generally dealing with the luxury purchase of a second home rather than an essential home. There is a market for primary habitation here but it is simply not a large part of our business.
Ultimately, when someone desires something but has the ability to wait in the belief that the benefits of waiting outweigh the disadvantages, that person will hold on unless something tips the balance in favour of taking action immediately. This limbo period is a simplified explanation of how the property market is currently behaving in the Algarve.
It is no secret that the Algarve is, generally, not a cheap destination. We have excellent and improving infrastructures, a wonderful cultural entertainment programme, countless local events and, of course, the weather, the beaches and the golf venues.
All of this, coupled with high demand, has resulted in property here appreciating steadily, with an average increase of 7% a year over the last 25 years or so.
With the credit crunch, there were fears in some quarters that the market would crash, property prices would come tumbling down and many people would be facing negative equity. But that's not quite what has happened.
Yes, many properties have been reduced in price, but only because the vendors are being more realistic and less speculative, or as a result of the owners desire/need to sell within a given time frame, or because there is over supply of certain types of property.
Properties that are in plentiful supply, especially holiday apartments, are suffering much more in the current market than those that are hard to find. Unique, well located, well constructed quality properties are still in demand.
There are undoubtedly fewer buyers out there now than before, but the vendors remain optimistic and there are historical and logical reasons for this. The Algarve property market has always been slow, with properties sometimes taking months or years to sell. The fact that the present international problems will slow the whole process down further is not a great shock to many people, as they never expected to sell their house quickly anyway.
Many vendors here either live permanent in the house they are selling or occupy it as a second home. Either way it is available to them whilst it is on the market. We are also seeing many owners now deciding to rent their properties to mitigate ongoing expenses. Long-term rentals are always in demand and rentals during the peak periods, which are not just restricted to the summer months, have always produced a good income.
Should I buy in the Algarve now or wait? is a question on many clients’ lips. This depends very much on your personal situation. If you are looking for a particular property and you have funds in place or the capacity to take a mortgage, then keep looking and buy whilst the market is not booming.
If you need a very high level of finance, before you even start looking at property talk to a mortgage broker or a local bank to see if you can obtain a mortgage at this troubled time.
If you want a holiday property or rental investment and you are flexible about the type and location, then look around and find yourself a good deal.
Another frequent question: Does the Algarve remain a good option for investment and as a holiday destination? Unlike many of the emerging regions, particularly those in Eastern Europe, the Algarve has had lots of experience as a holiday destination. We have established international and national transport links and a high flow of visitors. Many of the ‘new’ destinations have seen phenomenal increases in the value of property, but this has been quickly followed by enormous drops in property value as the market has weakened.
As less people want to travel to these destinations, many airlines are reducing the number of flights or canceling routes entirely, making affordable travel difficult. These are problems that the Algarve does not have. With the Portuguese Government and the regional tourist board aiming to promote the Algarve as a year-round destination, its appeal is widening.
The region has benefited over the last decades from a massive influx of investment, and the income this has created for local authorities is being used not just for physical improvements but also for funding for cultural events and entertainment.
We have a region which has an existing reputation and market, a constant drive for quality and a controlled development plan. Add all this to the natural environment we are blessed with, and there cannot be many better destinations such a short, direct flight away from the United Kingdom and Ireland.
When you look at the growth in the Algarve property market, the average increase is about 7% per year. This is not a headline making increase, particularly when new, cheaper destinations have claimed 40% in a year, but it has proved to be a steady and sustainable increase. And in these turbulent times, it is surely better to be the tortoise than the hare.
Archived market report-2005
The following is our market report published at the end of 2005.
PROPERTY LISTINGS
As we have now come to expect, property listings have been fairly constant throughout this period, albeit during the peak summer period (August) less listings are completed. This is a combined result of many properties being occupied during this period, and staff holidays reducing our effectiveness. We also changed our company from a RE/MAX franchise to an independent agent during August, which was in itself a large amount of work.
What we have found interesting is the type of properties that are now being offered for sale. Offshore properties are coming back on to the market, and we believe this is because the offshore situation is now clear, and there are various options when selling/transferring this type of property. Our focus has been on what we predict are the strongest parts of the market, namely at the moment the middle-upper price ranges of properties.
PROPERTY SALES
Traditionally, the second half of the year is the busiest period for property sales and this has, so far, been the case this year. Once again, we are selling a wide variety of properties (ranging from a small plot of agricultural land to a newly constructed unique luxury villa). The only type of property we have not sold during this period is a commercial property, although we do have some sales expected for the final quarter of the year. We are also currently developing part of our business to concentrate on this part of the market.
We have seen an increase in sales, when compared to the same period in 2004. The majority of properties sold were villas/quintas.
Interestingly (and for the first time) sales of plots and land were the second most popular purchase. The lowest volume of sales was for apartments, although this may be as a result of our desire to concentrate on certain parts of the market. As predicted previously, sales are now occurring in the middle and higher end of the market. Both these sectors of the market are buyers markets and there are some excellent properties now available at reasonable prices.
With regards to the nationality of our buyers during this period, it was a mixture (as ever). Buyers from the UK dominated, but we are very pleased to report that Portuguese nationals were the second largest group of buyers. This was followed by Dutch and Canadian clients. In the first quarter of this year no sales at all were to Portuguese nationals, and we believe that confidence in the national market here is now increasing.
FINANCE
Euribor dropped during this period (to 2.125%) lowering the mortgage rate here in Portugal. Extremely low rates (from 0.375% above Euribor) are now available to residents and nationals. Rates as low as 0.75% above Euribor are available to non-residents, making finance in Portugal an attractive proposition for many foreign purchasers.Despite this, we saw a drop in the amount of properties financed here during this period (14% of properties sold as opposed to 29% in the previous quarter).
However, as before, in the case of purchasers who have not needed finance, the main reason for this is them using equity from their main residence (generally in other countries).Interestingly, all clients that have needed finance have opted to obtain finance here in Portugal.
PROPERTY ENQUIRIES
This has been a very busy period for property enquiries, and we have seen an increase compared to the first quarter of this year. We believe a large part of this increase can be attributed to our change of brand, and more flexible working approach, which has definitely improved our level of enquiries.
On our main English language website www.azul-properties.com there were 24,286 viewings of properties. During this period, there were 9,341 visitors to our website, meaning that each visitor, on average, viewed 2.6 properties. This average has reduced, meaning that we are having more visitors, viewing fewer properties.
Physical (walk in) and telephone enquiries have remained at a good level throughout this period.
We have made agreements with a number of international companies to make marketing partnerships, mainly using the Internet but in some cases also using traditional physical advertising. Local and international print campaigns are currently running, targeting two distinctly different areas of the market.
COMMENT AND EXPECTATIONS
Following a strong start to the year, sales have been steady, with the expected levels of viewings and sales. It is a good sign for the market that properties in the middle and upper sectors are now selling.As we have said before, we believe that we are at present experiencing a strengthening market, but still biased towards buyers. There are definitely excellent deals to be made at present, in all parts of the market.
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