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Portugal’s Alentejo Coast has become one of the regions that has most attracted the attention of investors—particularly in the coastal zone—according to a study, "Portugal: The Luxury Tourist Resort Property Market 2011," prepared by the consultant and the Prime Yield Fine & Country Estate. The Algarve will continue to be characterized as an interesting area for investment but the Alentejo Coast and the West Zone are gaining prominence in the luxury residential tourism. Report findings are highlighted on APEMIP’s website. APEMIP is Portugal’s leading real estate association.

Portugal is a market with strong investment opportunities and excellent returns for those with good investment timing, according to a consultant for Prime Yield, and there is still room for development. The strength of the country’s market position lies in the fact that nearby markets designated “gold mines” in the past have suffered drastic reductions in the price of the properties, as compared to Portugal.

Portuguese luxury properties registered a decrease of 10 to 15 percent in the number of completed transactions, as well as the average values of sales in 2010. According to the report, the market was contracting in 2010 and the first half of 2011, influenced by adverse economic and financial conditions and the increasing restrictions on access to credit—nationally and internationally. This continued the trend from 2009, which was marked by a slowdown in the volume of supply in construction as well as a period of increased cautiousness in project’s planning stage. 

British, Irish, Germans and Dutch have been the main investors in this market. With the slow recovery of some of these markets, particularly the Irish market, there is the expectation that the region will attract new investors interested in the luxury market.