In Spain in 2007, drastic changes happened to the economy, as the country is so dependent on the property market here. Within a year's time, the property boom here may have dried up. At the same time, half of the real estate agents in Spain closed their doors, some 50,000 construction workers lost their jobs and the country has dropped new home sales sold by 20,000 less.
All of these are troubling signs for Spain's economy, but Portugal just over the boarder may not have to face such devastating circumstances. While Spain's economy was dependent on its property market, the same is not true for Portugal. Additionally, there seems to be more stability and regulation in Portugal, which may help it avoid just a downward turn.
Most of the country still have available property for investment and a solid investment does not cost too much here. The demand for Portugal property is out there, which is why many forecast the country to have a stable property market going forward.
Estate agents here believe it may take longer for buyers to make investments, mainly due to the concerns of the credit crunch and subprime lending scares, but not because of the lack of value in Portugal.
The place for investors to look, then, is the Algarve property market in Portugal.
