Why The Current £ / € Exchange Rate Isn’t Affecting Portuguese Property Purchases
The UK’s Brexit decision was clearly momentous and the resulting flux in the foreign exchange markets has made for tough decisions for some buyers; but after some uncertainty, a ‘new norm’ has emerged.
This new order in the market appears to have emerged for a number of reasons:
- 1 - Quality of Life: The desire for a lifestyle overseas property purchase outweighs the downsides in the currency market.
- 2 - Comparative Costs of Living: The actual costs of buying and owning a property in Portugal remain considerably below that of northern Europe.
- 3 - Tax Advantages: The Portuguese Non Habitual Tax Residency Regime offers distinct advantages for professionals and retirees wishing to share their life between Portugal and their home nation.
- 4 - Investment Opportunities: There’s over £2tn of residential property investments in the UK and with changes to tax and stamp duty rates, properties in Portugal are offering good alternative investments.
- 5 - Stability and Safety: Portugal is seen as one of Europe’s success stories. Despite years of austerity, the country is seeing significant growth and external investment and is optimistic about it’s position in Europe.
Whilst each of our buyers will have their own personal reasons about buying here in the central Algarve, the solidity of the market, quality of properties on offer and the lifestyle advantages (including cost of living) are key influencers, with the current exchange rates being “accepted” by buyers as the new norm.
For those looking to sell, for many there are significant upsides. Locally, we’re fortunate to have a stable market where owners and their families retain properties for many years, even decades. Properties purchased at higher rates of exchange are now becoming even more lucrative investments when returning funds outside of the Eurozone and therefore there’s an added incentive to sell right now. Combine this with a growing market and a significant demand for quality properties and you have the perfect opportunity to realise a great return on investment.
Whether you’re buying or thinking of selling, it’s important to talk to one of our experts today. Come see us at one of our forthcoming property exhibitions (below), visit us at our offices in Albufeira, simply send us an email or call.
We look forward to hearing from you.
Robert and Ana
Visit us at one of our Exhibitions! Free tickets available via: firstname.lastname@example.org
A Place in the Sun Birmingham: 22 - 24 September 2017
Köpa Hus Utomlands Stockholm: 23 - 24 September 2017
The Luxury Property Show, London: 27 - 28 October 2017