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Print PageWhile the Algarve is viewed as one of Europe's most successful investment markets, the Western Algarve is still relatively undiscovered and provides excellent opportunities for investors according to Prestige Group, the international property investment and development organisation.
The Western Algarve is providing exciting investment opportunities with Capital growth of as much as 66% over three years, while the rest of the Algarve has averaged a less impressive 15% over the past 18 months[2].
These price increases have been fuelled by significant investment in infrastructure and development, including the opening of the Via do Infante motorway in 2004, which means the area is now within easy reach for visitors who want an uncrowded and unspoilt location.
Strict planning rules have controlled building work across the Western Algarve, preserving the area's traditional feel and cultural heritage, and ensuring it does not suffer the same fate as the over-developed Spanish Costas. This has resulted in a more affluent region suitable for high-end, sophisticated investors who prefer to invest in upmarket property.
Strong rental demand Rental demand along the Western Algarve is strong, as the Algarve benefits from being one of Europe's top destinations for tourists. Not only does it attract holiday makers over the summer months, but also it benefits from having a reputation as one of the world's best golfing destinations. This again attracts a more affluent tourist, and means the rental season spans a greater length of time as it is not limited to the summer. This has brought higher yields to investors and ensured high occupancy levels - the average hotel and apartment occupancy in 2005 was 77.6%, up 6.5% from 2004.
Prestige Group is bringing high-end investment opportunities in the Western Algarve to sophisticated investors, such as Vale de Ouro near Salema, a resort of 97 exclusive villas unit which offers the opportunity of a six-year investment consisting of a three-year build period (with just 20% deposit) and three years' guaranteed rental return of 5.5% following completion. This includes an important lifestyle element that allows six weeks' personal usage per annum and concessions at Vigia Group's Parque da Floresta resort which is adjacent. Prices start from £260,000.
