Wed, 19 Apr 06
The Western Algarve is providing exciting investment opportunities with capital growth of as much as 66% over three years, according to Prestige Group, the international property investment and development organisation.
By contrast, the rest of the Algarve, whilst better known to investors, has averaged a less impressive 15% over the past 18 months.
Prestige Group attributes the growth of the Western Algarve to significant investment in infrastructure and development. In particular, the opening of the Via do Infante motorway in 2004 has boosted the area's accessibility to visitors looking for an uncrowded and unspoilt location.
Strict planning rules have preserved the traditional feel and cultural heritage of the Western Algarve, ensuring it does not suffer the same fate as the over-developed Spanish Costas further along the coast. This has resulted in a more affluent region suitable for high-end, sophisticated investors who prefer to invest in upmarket property.
A popular golfing destination
According to Prestige Group, rental demand along the Western Algarve is strong, as the Algarve is one of Europe’s top destinations for tourists. What's more, with a reputation as one of the world’s best golfing destinations, the rental season spans a greater length of time and is not limited to the summer.
This has brought higher yields to investors and ensured high occupancy levels. The average hotel and apartment occupancy in 2005 was 77.6%, up 6.5% from 2004.
Paul Coghlan, Chairman of Prestige Group comments: “The Western Algarve is a new growth area and has great untapped potential. Prices are expected to rise to central Algarve levels, which are among the highest in Europe. Although still relatively undiscovered, the Western Algarve is ideal for sophisticated investors looking to see strong capital returns.”
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