Portugal: Real estate challenges continue to mount

In 2006, there were about 70,000 foreign nationals owning a home in Portugal, according to Bernardo Trindade, secretary of state for tourism. That "represents about 4 percent of the total Iberian market," he said. "We estimate their number will grow by about 5 percent annually in coming years."

An international campaign advertising Portugal as "Europe's West Coast" was started recently to highlight the modern country in contrast to the old donkey and track images of the past.

"We want our country to be one of the main destinations of reference in Europe," Trindade said. "Portugal has excellent conditions to establish itself as a destination" - with the idea that a tourist who has a good experience is likely to return and possibly to buy property.

Jose Fleming, the resort's commercial executive, said about 80 percent of the development has sold, with prices range from €345,000 to more than €1 million. Three-quarters of those buyers came from abroad, mainly Britain, Spain, Ireland and the Nordic countries - and now the resort has begun a sales drive in Germany. To read more click here.

By Patrick Blum
Published: February 28, 2008