Amidst the headlines about deficits and defaults in Europe, some good news has come out of Portugal. Data from the latest RICS Survey revealed a slight improvement in activity and sentiment in the country’s property market, while this summer Portugal’s airports have recorded the highest number of passengers in over ten years.

It is hoped that a bumper summer of tourists, who flocked to Portugal for a cheap holiday amid the economic crises, will have generated fresh appeal to holidaymakers looking for a second property.

Stephen Anderson, MD of agent Infinito Real, commented: “We have seen a marked improvement of interest in purchasing property in Portugal off the back of a busy summer. The greatest problem for us at the moment is finance and therefore cash buyers really are the purchasers in the driving seat. With that said, agents must carefully manage the expectations of investors who still believe that asking prices are just a figure to be heavily negotiated – discounts of up to 20% and 30% are simply not available, as these prices are already discounted by at least this amount, although some movement can be negotiated. The next few weeks will determine whether the summer has helped the market turn a corner.”

Anderson believes that once Portuguese banks start to lend again, the Algarve will be best positioned for a quick recovery and will provide a window for investors to make the most of property prices at the lowest they are likely to be.

To understand the full step-by-step process to buying a property in Portugal, collect The Overseas Guides Company’s ‘Portugal Property Buying Guide’