Despite crisis Algarve property prices are rising

With unemployment rising, and anemic GDP growth, Portugal's housing market declined slightly in Q2 2010. Despite very low interest rates, economists believe that Portugal's housing market could decline further as the country implements measures to reduce deficits, and new residential construction levels decline. See the following article from Global Property Guide for more on this.

he average price of houses in Portugal fell by 0.3% in Q2 2010, after four consecutive quarterly price increases, according to the Instituto Nacional de Estatistica (National Statistical Institute or INE), with concerns over Portugal's deficit worsening.

Compared to a year earlier, the average price in Q2 2010 was up by 2.9%.

Nevertheless, the Algarve, with its Mediterranean coasts, bucked the trend of falling prices in Q2 2010.  The average price in the region rose to €1,491 per sq. m., 1.9% up on the previous quarter.

21 september 2010

source nuwireinvestor.com