New data suggests that fewer Brits are looking to purchase properties in Portugal’s Algarve region post Brexit.
According to newly released figures from Fine & Country Algarve, British nationals now account for only about 40 per cent of the clients looking to buy property in the Algarve, down from around 80 per cent prior to the referendum.
The weak Pound against the Euro has been given as the main reason for the decline interest, especially as this has come at a time when property prices in the Algarve have risen substantially.
While the pound has fallen by between 10-15 per cent against the euro since the vote, Portugal’s existing home prices increased by 9.1 per cent in the third quarter of 2016 from a year earlier. This was the largest rise in seven years.
However, while this may be putting some Brits off the idea if purchasing a home in the Algarve – famous for being one of the world’s best golfing regions – those who already own a home there could find themselves tempted to sell.
“British property buyer numbers began to fall after the sterling fell following the Brexit vote,” Zoe Hawker, head of Fine & Country Algarve, told Bloomberg. “The flip side was very good because the French are coming in with stronger euros and buying from agents like us who happen to have large portfolios from British sellers.
“Many vendors are sterling-based and consequently were prepared to accept lower euro offers which resulted in some great deals for both parties,” Hawker added.
Article published 19th January 2017