Green shoots appearing in the Algarve
5th April 2013
The first 10-10-10 Algarve Residential Tourism Survey was completed in mid February 2013, researching market confidence, performance and trends in the market using a detailed research questionnaire. Data was gathered from leading real estate agents across the Algarve.
The report found that 70% ofleading Algarve property agents report market "has bottomed and is now turning up". Enquiries, offers and transactions were all reported up by the majority of respondents with evidence of enquiries leading to real transactions, for example 26% of enquiries for villas and luxury villas converted into 27% of actual market transactions.
The top of the market and the ‘modest’ end of the market dominated - 27% of transactions were at €1 million + and there was a 17% increase (v 2011) in transactions in the €100,000 – €500,000 price band which took 51% of the market in 2012. The middle market has traded down from a price perspective in order to take advantage of discounted product and are paying in cash – there was a 32% decrease in transactions in the €500,000 to €1 million (10% of demand) price band. 25% of total transactions were in the €250,000 to €500,000 price bracket.
Andrew Coutts, CEO of ILM which commissioned the report, said: "There is reason to be optimistic that after five years of market turmoil, 2013 will see the beginning of a new dynamic.”
Fractional Life founder Piers Brown said: "This report from the Algarve is good news, particularly in the light of a growing appetite for mixed-use resorts from both developers and buyers. These resorts are increasingly factoring in an element of fractional ownership properties in the mix. At the recent Leisure Real Estate Summit in London, the Alfamar resort on the Algarve was the subject of a "resort re-engineering" case study discussion which looked at the potential for fractional real estate alongside whole ownership and hotel elements."
To read more from the 10-10-10 Executive Summary and Key Conclusions report go to
www.ilm-group.com/10-10-10 where the full report can be downloaded.