To Buy In... The Algarve, Portugal

Property guru Jonny Benarr checks out the sunny Algarve, with tips on how and where to buy. Photography by Hannah Lucy Jones

THE PLACE

The Algarve is a summer paradise, but its plentiful sunshine and beautiful landscapes beckon visitors all year round. Off-season, average temperatures are about 19 -22˚C, the beaches are quieter and you can enjoy some incredible coastal walks.

“Algarve” is derived from the Arabic “Al- Gharb”, which translates as “The West”, and it’s a favourite destination for holidaymakers from across Europe, particularly British and Irish tourists. And it’s not difficult to see what attracts so many people here – the fine seafood, Blue Flag-standard sandy beaches, high-quality golf courses, and that all-important weather all play a part. The population actually trebles in size during the peak summer months.

As with any location that offers so much while still retaining its natural beauty, you can expect the properties to come at a premium. And they do. Starting prices for a moderate one bedroom apartment weigh in at around

€225,000, while a 2,000m² plot of land to build your own lakeside property will set you back at least €5 million.

However, there are opportunities for buyers with more modest budgets too. Shared- ownership properties are available, and on my recent trip I saw one in particular that seemed like a great deal: in Quinta do Lago, €135,000 will buy you a half-share of a 88m² one bedroom ground-floor apartment. It will allow you six bundles of four weeks annually, to be used as you please. The attractive property enjoys its own garden, fantastic lake views, and use of the communal pool and tennis courts. You can easily obtain a rental licence to let the property when you are not using it, and get at least €500 a week.

Although there are 16 municipalities in the Algarve region, we concentrated our search in Lagos, an area renowned for being clean, safe, and family friendly.

THE PROFESSIONALS

“The market in the Algarve is very stable,” says Kerstin Buechner Dias, one half of the sibling- owned Quinta Properties (www.quintaproperty. com). Multi-lingual, extremely knowledgeable, and passionate about property, you will be hard pushed to find a better agent and adviser in the Algarve. ““Recession-proof ’ is a strong term but we certainly haven’t experienced the sort of price falls seen in other parts of Europe.”

THE PROCESS

Once you have successfully negotiated a price for purchase, the agent will prepare a letter of intent for both buyer and seller to sign, including details such as the price, date of exchange and completion. This is then passed on to the legal representatives of both parties as a reference for the main purchase contract.

“Ensure you are represented by a local lawyer,” advises Kerstin. “Your lawyer will prepare a promissory contract, which is legally binding, and is signed by both parties in front of a notary/lawyer.”

Upon signing, the buyer usually pays 10% of the price to the seller. This is non-refundable if the buyer changes their mind. If the vendor changes their mind then they are liable to pay back double. Costs associated with a purchase usually equate to about 10–12% of the purchase price, although a full in-depth buyers’ guide is available from Quinta Properties.

Entry level

WHAT? A first-floor two double bedroom apartment within a two- storey building. It features an open plan layout, simple yet elegant decor and a good-sized kitchen. Paradoxically for a property as spacious as this, it feels incredibly cosy and inviting.

WHERE? Encosta do Lago (pronounced “Encoshta”), a small village development within Quinta do Lago made up of villas and apartments. There’s a communal pool, two tennis courts, a gym, bar and restaurant – all within walking distance of the beach, so you won’t need a car if you live here.

HOW MUCH? A veritable bargain at €285,000. There are good deals to be had in this area too – the properties are over 10 years old, and many owners have been here since the start and may be keen for a change of scenery.

CAN I RENT IT OUT? Absolutely, and you’re looking at €700 a week during the peak summer season.

WILL IT MAKE ME RICH? Due to the competition at this price range, buyers can negotiate themselves some good deals, and when the good times return you will be well placed to generate some serious equity.

Mid-level

WHAT? A luxurious semi-detached villa that has recently been refurbished to create a sleek, chic and trendy property. Set over two floors, it offers a south-facing terrace, private swimming pool, roof terrace and two bedroom suites. The open-plan living arrangement is spacious and social.

WHERE? Lakeside Village in Quinta do Lago, a development that was established in the mid-1990s and provides all the required local amenities. It’s also situated within walking distance of the beach and a lake featuring watersports.

HOW MUCH? A quirk of the Algarve is that some properties are marketed in euro, others in sterling. This one is available for £675,000 (€772,000 at time of going to press), although as with all properties in the area, all reasonable offers will be considered.

CAN I RENT IT OUT? During peak season this property will achieve €1,400 a week, reducing to €800 off-peak.

WILL IT MAKE ME RICH? This property has been purchased, renovated and re-marketed, so the scope for growth is limited. But some strong negotiating could earn you some immediate equity.

Executive level

WHAT? This outstanding four-bedroom detached villa boasts a large roof terrace, huge veranda, private swimming pool, and an outdoor kitchenette that’s perfect for parties. It also features luxurious bathrooms, a kitchen fully kitted out with high-end appliances, and an enormous basement primed for adapting into a games room and sauna.

WHERE? On the Ponta da Piedade peninsula outside Lagos. A luxury development of villas, apartments and a five-star hotel and spa under the stewardship of Cascade Resort (www. cascade-resort.com). Fancy some tennis? Stefan Edberg is buying a property here. Football? Sven-Göran Eriksson is part of the sports academy.

HOW MUCH? €1.4 million. Prices are negotiable, but the initial offer has to be realistic to allow discussions to start.

CAN I RENT IT OUT? You’ll need to enquire with the agent, but rental may be an option.

WILL IT MAKE ME RICH? As with any new luxury development, get in early and reap the rewards later. With such a fantastic location, an exquisite array of amenities and beaches on your doorstep, there won’t be many better resorts to live in.

If money’s no object

WHAT? A vision of glass, stainless steel, whitewashed walls, geometric lines and pure, unadulterated style. This property is beyond the wow factor. This is A-list celebrity territory, with triple-height windows, a circular open-plan living arrangement, four bedroom suites and an incredible pool – all retained behind a secure gated driveway.

WHERE? On the Vale do Lobo resort’s Ocean golf course – a fantastic links that affords the property jaw-dropping sea views straight over the sandy beaches, barely 50m away. You will be hard pushed to find better views anywhere in the Algarve.

HOW MUCH? A snip (ahem) at €12.5 million, although that buys you 430m2 of living accommodation on a plot of 1,092m2 – a view that money can buy!

CAN I RENT IT OUT? Expect people to pay about €10,000 a week to stay here, minimum.

WILL IT MAKE ME RICH? I don’t think that’s too much of a concern if you are considering buying this property. Although, if you have cash and your offer starts with a 10 (followed by six zeros) then you may get a bit off the asking price.

Fast facts

GETTING THERE

Faro airport is just 4km from Faro, and bus services operate from outside the terminal (www.ana-aeroportos. pt). Journey time is about 15 minutes. Alternatively, a taxi will cost you about €10. Quinta do Lago, Vale do Lobo and Lagos are all driving distance from Faro. For car hire at the airport contact Hertz (www.hertz.com), Ryanair’s exclusive rental partner, which offers special rates to Ryanair passengers.

STAYING THERE

Our writer stayed at Cascade Resort on the west coast of the Algarve, just over an hour from Faro. Dubbed a “wellness and lifestyle” resort, the hotel offers a serene and relaxing stay, thanks to the range of health and beauty treatments on offer. Other great reasons to bed down here include the private beach, and swimming pool with terrace. For more details, visit www.cascade- resort.com

ABOUT OUR EXPERT

Jonny Benarr is a property investment consultant for the UK and Europe. For more details, visit www.jonnybenarr.com