Resorts bounce back in Portuguese market
Resort building, and development is back in Portugal with growing demand after years in the doldrums.
The British continue to be the main international segment who most seek out this kind of tourist development although there is demand from over 40 nationalities.
The golden years of the tourist resorts in Portugal were between 2000 and 2007, with the development of large tourist developments, designated resorts, some of which were labelled Projects of National Importance (PINs).
However, many such developments, mostly in the Algarve region, were caught up in the financial crisis from 2008-2013.
Some resorts, developed with almost 100% credit, ended up in the hands of the banks as the developers were unable to pay the crippling interest rates and the second home property market dried up during the recession years.
Other new development projects remained on stand-by but now some 50 projects are expected to move forward in the Algarve alone, mostly holiday home projects within resorts which are expected to increase in value by 7.1% this year according to Confidential Imobiliário.
According to the “Resorts Market Sentiment Survey,” a survey launched as part of SIR – Residential Tourism, a statistical instrument developed with CI and the APR (Portuguese Resorts Association) with the support of the Portuguese Tourist Board (Turismo de Portugal) the resorts offer a distinct product which is different from those offered in Lisbon, Porto and the main cities.
The main markets of origin continue to be the United Kingdom, Benelux/Scandinavia and France although there are some 40 nationalities investing in properties in Portuguese resorts (25%) comprising buyers from Germany, Ireland, China, the Middle East, and the United States and Canada.
Among the resorts gaining popularity and momentum are the Ombria Resort in Loulé, Algarve, developed by Finnish investment fund Pontos with an investment of €100 million and La Réserve which is part of Resort Natural & Spa at Comporta – Carvalhal developed by the French group Terrésens.