The city of Porto in northern Portugal is a good one for rental property, it has been stated.

Writing for Nubricks.com, John Moore of the Move Channel said the city is both a major port and industrial city on the one hand and at the same time a popular tourist destination, famous for Port wine.

He stated: "In addition to its tourism trade, Porto attracts many foreigners for business and educational reasons, making it a good location for rentals on a long term basis."

In a trend that may interest those keen on investing in Portugal, property prices have been coming down in Porto and elsewhere, partly as a result of there being fewer English buyers in the credit crunch.

Mr Moore said this has been the case in Porto and Portugal Resident reports that a survey by real estate newsletter Confidencial Imobiliario has found that this situation also applies to Algarve property, although the region’s property prices remain higher than elsewhere in Portugal.

Such a situation may mean investors can find more bargains in Portugal.

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