Casas do Barlavento Sales Director’s Opinion on Brexit

It is quite clear to see that it is still vibrant in the Western Algarve with many people visiting, looking and buying. The question we need to ask ourselves is, how long is this going to last? Maybe 2 or 3 years? What we do know is that it is a perfect time for vendors, especially the UK owners, to take advantage of the conversion rate back to the pound.  The serious lack of product for sale in the area is now clearly apparent, and the prices of many of the existing properties are being raised. For Casas do Barlavento, buyers this year are mostly from Sweden (26%), France (19.5%), UK (19%) and other European countries. If these investors are going to continue to direct their interest to the Algarve or even Portugal as a whole, then the requirement for more properties becomes even greater.  Portugal continues to be a trend as “investment in Portugal’s real estate sector is set to reach a fresh record of up to 3 billion euros this year, boosted by foreign buyers, up from 1.9 billion euros in 2017, a leading consultancy in the sector said”¹.

I’m being asked all the time, is the “Brexit” issue the reason why many of the Brits are not buying? The answer is “yes”, as there is a lot of uncertainty around what is going on at the moment. On the other hand, I do think the currency rate of exchange is a major factor here too for the UK citizens wanting to purchase. So, once stability is regained (and I hope stability is regained shortly) then we hope to see a further increase in buyers from the UK market. But like most things, this will not be resolved overnight, as the fallout to this happening has potential to take some time.

Interesting times are ahead for us all here in the Algarve, and even though buyer confidence is still high and the appreciation is still there for the investment and location of the Algarve properties, we have to be prepared for what the future holds for us. With this in mind, I will leave you with a positive note for all of those who want to sell their property, whatever the reason – now the real estate business is a vendor’s market, which means, there are potential buyers interested in your property. Therefore, put your plan of selling your property into action! This is the best time to sell your home so don’t wait any longer and contact us at Casas do Barlavento. As local agents, in the Western Algarve, we are specialists at pricing and promoting your property the best way possible. We can provide a free valuation, a promotion plan for your property and advise you the best way to organise this process. Imagine if we are even able to sell your unit before Christmas, anticipating your New Year’s resolutions! A perfect start for 2019, don’t you think?

¹ Reuters - https://reut.rs/2FAoz4v.