Portugal is spearheading a revival in house price growth in southern Europe, according to the latest report from EU statistical office Eurostat.
Average house prices rose across the European Union in the second quarter of 2014, with Ireland and Portugal both recording some of the strongest growth, and Spain also back in positive territory. The latest Eurostat report showed that house prices rose by 0.9% in the Eurozone and by 1.4% in the whole of the EU in the second quarter of 2014, compared with the first quarter. Compared to the same period last year, prices in the EU grew by an encouraging 1.7%.
"Despite growth being driven by eastern and northern European countries, including the UK, it comes as no surprise that Portugal was the best performing out of southern European destinations popular with British people," said Angelos Koutsoudes, Head of the Overseas Guides Company, publishers of PortugalBuyingGuide.com.
"Property there has represented excellent value for money for the past few years, and the price rises represent the return of demand to the Algarve. Being smaller than other European second home markets, such as France and Spain, arguably means it has been faster to turn around. Enquiries at our PortugalBuyingGuide.com site have surged in 2014 and our new office in Vilamoura is well placed to service any revival.
"Portugal's non-habitual residents tax – which makes it a cheaper place to live for wealthier foreigners, including pensioners – than other European countries will be helping to stimulate the market. Not forgetting, Portugal was one of the first countries to introduce a Golden Visa for foreigners outside of the EU, so perhaps these two measures are beginning to effect the market there."