PORTUGAL COUNTRY OVERVIEW

Year-round returns EU stability

Great prices
Limited supply due
to strict planning Great leverage
80% loan-to-value
Excellent golf courses mortgages available
 Portugal
at a glance
Getting there
Russia

European airlines fly into Portugal

UK
directly year round. Cheap flight
Atlantic Ocean operators now run a daily service to
France Lisbon and Faro from the UK, with
prices starting from around £130 return.
ugal

Spain
Airports: Lisbon, Porto, Faro
Port

Mediterranean Flight time

occo
London-Lisbon: 1hr 40mins
Mor London-Faro: 2hrs 40mins

Portugal at a glance
Area: 92,345km2
Climate: Temperate
Time Zone: Same as the UK
Population: 10.3 million
Language: Portuguese
Capital city: Lisbon
Currency: Euro
Joined EU: 1986
Political system: Republican parliamentary
democracy
Winter averages: 58ºF
Summer averages: 82ºF
Dialing code: 00 351

Portugal  Ready2invest
 Why Portugal?
Availability of Mortgages
Unlike some of the emerging Eastern European
markets, Portuguese mortgages are readily
available to overseas investors. All mortgages
are based on status, with proof of income and
outgoings required and the mortgage secured on
the property in Portugal. This means a smaller
initial outlay from investors and better overall
returns for your investment.
Planning Laws to Stop
Overdevelopment
A new planning law was introduced in 19931,
following a rash of over-development. One of
the strictest planning laws in Europe, it has
been instrumental in preventing Portuguese
‘hotspots’ from suffering the same fate as the
overdeveloped Spanish Costas, allowing the
country to maintain its traditional feel and
atmosphere. It has restricted the number of
new-builds, which has and should continue to
force property prices higher.
Massive EU Investment in
Infrastructure
Between 2000 and 2006, the EU pumped €25
billion into Portugal to greatly improve the
country’s infrastructure. Roads and transport
links have been significantly upgraded and in
2008, construction will begin on a high speed
rail line, which will cut the 10-hour journey
from Lisbon to Madrid to less than 3. The EU
Portugal
has pledged a further €22.5 billion over the On the western
next six years. The equation is simple - when edge of mainland
infrastructure improves, property prices go up. Europe, Portugal has
stunning landscapes
Extremely Safe Investment and scenery. Nearly
Location 1,000 km of coastline
As a location, Portugal meets all the criteria for
separates the country’s
a low risk investment. It has been a member of
interior from the
the European Union since 1986, part of the
Atlantic Ocean,
single currency since its inception in 2002,
affording visitors
has a stable government and enjoys steady
some of Europe’s
economic growth.
most spectacular and
Year Round Rental Returns
pristine beaches.
With its mild winter climate, cheap daily flights
from all over Europe and an average of 300
days of sunshine per year, Portugal is a hugely
popular year-round destination. Its attractions
create a strong tourist demand, which ensures
investors can make solid rental returns from
holiday-makers throughout the year.
Prime Tourism Destination
Portugal remains a massive destination for
tourists. The World Travel and Tourism Council
forecasted this year alone that Travel and Tourism
would contribute €30.6 billion to the economy,
growing to €53.5 billion by 20162. Tourism to
the country remains rock-solid, which means
strong demand for quality accommodation and
in turn, higher occupancy rates for investors.
 Ready2invest
 Perfect Holiday or Second Home
Location - Lifestyle
Portugal maintains a centuries-old tradition of service
and hospitality that has made it the perfect destination for
visitors. A slower pace of life, fantastic leisure opportunities
and excellent living standards prompt many to invest in a
second home there.

Capital Growth Hotspot

Channel 4’s “A Place in the Sun” has listed Portugal as the
third best overseas property option in its recent list of the
twenty best investment locations their research was based
on information provided by Price Waterhouse Cooper. The
leading property programme cited a potential 360% return
for investors in Portugal over the next ten years3. Christina
Hippisley wrote, “The outlook for Portugal remains stable
which should mean steady capital gains for investors ready to
take a ten year view.”4 Capital growth has remained consistent
in Portugal at between 10-15% per year since 2000.

Natural Beauty
On the western edge of mainland Europe, Portugal has
stunning landscapes and scenery. Nearly 1000 kilometres of
coastline separates the country’s interior from the Atlantic
Ocean, affording visitors some of Europe’s most spectacular
and pristine beaches. Nature reserves are dotted throughout
the country’s landscape and history enthusiasts marvel at the
traditional architecture. Portugal continues to attract visitors 1. Plano Regional de Ordenamento do Territorio Algarve/PROTAL
2. http://www.wttc.org/2006TSA/pdf2/1.Portugal.pdf
in droves, which will place huge demand on the country’s 3. http://www.channel4.com/4homes/ontv/place_in_the_sun/20_make_money-4.html
4. “Portugal” June-July 2005 “Capital Investment” – Christina Hippisley http://www.praia-del-rey.com/press/Portugal-Magazine-
accommodation facilities.

Portugal  Ready2invest
 Portugal’s Political Foundation
Portugal has been transformed in recent decades. The
consolidation of democracy since the 1974 revolution,
which overthrew the authoritarian dictator Marcelo
Caetano, and EU membership since 1986 has brought
Portugal into the European mainstream. In 1999 Portugal
was one of the first countries to introduce the euro.
For over three decades now, Portugal has been a progressive
democracy founded on the rule of law and committed
to promoting free enterprise. In Portugal, the right to
ownership of property is well protected. The 1989 revision
of the constitution removed much of the remaining
Marxist rhetoric of the original document and laid the
groundwork for further privatization of nationalized firms
and the government-owned communications media. The
1992 revision made the constitution compatible with the
Maastricht treaty.
While Portugal has not historically played a leading role
within the EU, its six-month presidency of the Union in
the first half of 2000 and the high international profile
of the then prime minister, Antonio Guterres, enabled
Portugal
the country temporarily to punch above its weight in
EU affairs. The election of the former prime minister,
Mr. Durao Barroso, to the presidency of the European
Commission in July 2004 could serve to raise Portugal’s
profile in the EU once more.
In 2006 Portugal’s voters chose a centre-right president –
the first since 1974. Anibal Cavaco Silva won over half the
vote, enough to defeat five left-wing opponents without a
second round. Mr. Cavaco Silva was prime minister from
1985 to 1995, and is remembered for his determination
to embrace the market through privatisation, deregulation
and investment boosted by aid from the European
Union. His election bodes well for Portugal’s social and
economic prosperity.
The Anglo-Portuguese Alliance between
England (succeeded by the United Kingdom)
and Portugal is the oldest alliance in the world
which is still in force. It was signed in 1373.
 Ready2invest
 Why the Silver Coast?

Potential Capital Growth

According to leading property consultants, Hampton’s International, prices on the Silver The seafront of Sao
Coast are 25% cheaper than the Algarve and up to half the price of a similar property Martinho do Porto
in Spain. Sao Martinho do Porto has become a weekend getaway for many people from on the Silver Coast is
nearby Lisbon. With the capital just 45 minutes south and linked by an excellent road
a spectacular shell-
system, the Lisbon city-set has been snapping up second homes in the beautiful seaside
village and pushing property prices up.
shaped bay. Known as
“Concha” to the locals,
Planning Restrictions it is one of the warmest
Planning permission in Portugal is subject to strict controls in an attempt to avoid the and most sheltered
overdevelopment that has blighted other parts of Europe. Therefore, demand is high on places to swim along
new developments, meaning prices rise accordingly. the Atlantic coast,
providing a safe
Natural Beauty environment for
Much of the Silver Coast remains raw and untouched compared to a lot of Portugal’s
families. The appeal is
more developed areas. Here you can find semi-deserted sand beaches and crystal-
clear Atlantic waters. In Sao Martinho do Porto, the cobbled streets of the older part
obvious to the savvy
of the village are lined with cafes and traditional restaurants, while the seafront is a investor - locations
spectacular shell-shaped bay. Known as “Concha” or Conch Shell to the locals, it is one such as this are
of the warmest and most sheltered places to swim along the west coast, providing a safe becoming scarcer.
environment for families. The appeal is obvious to the savvy investor - locations such as
this are becoming scarcer.

Portugal  Ready2invest
 Why the Silver Coast?

Year Round Good Climate and Stunning Historical Attractions

Whilst enjoying similar good “sun and sea” weather to the southern part of the country, the Silver Coast also offers tourists
cultural and historical buildings, monasteries, cathedrals, castles and fortresses that encourage year-round interest. Even
in winter, temperatures average around 16C, pleasant, temperate conditions for outdoor leisure activities.

Improvements to Infrastructure
Sao Martinho Do Porto is currently undergoing extensive urban improvements, including a new fully lit pedestrian
beach walkway and road along the entire stretch of the bay, and a panoramic lift that will link the lower part of the town
to the delightful old historic centre. These projects have been designed by Portuguese architect Goncalo Sousa Byrne and
are expected to be finished by the end of 2007, prior to the completion of the development.

Future Tourism Destination

While the impact of tourism has not been as obvious on the Silver Coast as it has on the Algarve, the need to expand
Lisbon’s airport, an hour south, has been identified in anticipation of increasing passenger numbers in the future.
€550 million has been set aside to expand the existing facility, in preparation for a new €3.5 billion airport just 25
kilometres from Sao Martinho do Porto, which is set to realise an increase in passenger numbers. The airport is due
for completion in 2017 and this huge increase in passenger numbers will result in a subsequent increase in demand for
quality accommodation throughout the region.

Fantastic Golf Courses and Leisure Facilities

Following in the footsteps of the Algarve, developers along the Silver Coast have also begun constructing world class golf
courses to cash in on Portugal’s lucrative sports tourism market. Already two international-standard 18-hole courses are
available to golfing enthusiasts, with plans to build more over the next few years. This should attract a slice of the country’s
sports tourism to the region, generating more revenue and fuelling the need for quality tourist accommodation.

High Living Standards But Low Cost of Living

As part of the EU, Portugal enjoys high living standards including excellent healthcare and education systems, yet it
remains one of the least expensive countries in western Europe. Daily items such as food and wine are of excellent quality
and the cost of a meal for a family of four is only around €35 per head.

EU Property at Non-EU prices

Prices are the same as some non-EU countries and over 50% less than coastal resorts in neighbouring Spain, leaving
plenty of room for growth. The emerging Eastern European markets are exciting, but not yet established, whereas
Portugal has been a member of the EU since 1986 and represents an ideal opportunity to diversify into a very safe and
stable economy.

5. Reference source: (“The Cut Price Coast” – Nigel Lewis, Daily Mail Friday April 29, 2005). http://www.praia-del-rey.com/press/Daily-Mail-290405.pdf.
6. Reference source:(Portugal Magazine 2004) & http://www.ana.pt/portal/page/portal/ANA/PAGINA_CONTINUIDADE_IMPRENSA/?actualmenu=199430&IMP_
CT=183374&cboui=183374

Portugal  Ready2invest
Why eastern Algarve?
‘Real Portugal’
The central Algarve (the area between Portimão, Albufeira Portugal
and Vilamoura, see map), is very popular with tourists, and
as a result of international demand has become a global,
Silves

somewhat crowded and, some say, overdeveloped destination. Algarve

In contrast, the eastern Algarve is noted for being ‘real

Santo Antonio
Portugal’. The government has taken heed of the way the

Vila Real de
Portimao

Tavira
Faro
Lagos

Vilamoura

Albufeira

central area has developed, and laws have been passed to

protect the eastern Algarve from similar overdevelopment.
Olhao

This means property, near the sea, is in very short supply. Atlantic Ocean

Tourism hotspot Natural park on the doorstep

Faro airport is the gateway to the Algarve, with 5 million
passing through its doors in 2006. The eastern Algarve has a
rich variety of tourism activity. The area is blessed with historic
towns, such as Tavira, famous for its churches, cultural life
and its Roman bridge. Beautiful sandy beaches stretch along
its coastline and there are plenty of first-class golf courses.
The area hosts a variety of events throughout the year from
arts festivals to colourful traditional processions. The recent
launch by the Algarve Tourist Board (RTA), of the Algarve
brand ‘Allgarve’ means the profile of the region is going to
rise even more, backed with €6 million of investment6. All
of this will maintain a high tourist demand, giving a positive
effect on property and holiday rental yields.
6. www.algarvemais.com/content/view/614/1/lang,en/
The eastern Algarve is home to the Parque Natural da Ria
Formosa, famous for its coastal lagoons, lakes, wetlands,
dunes and beaches. This takes up 60km of the eastern
Algarve’s coastline, and has become a popular destination for
walking, wildlife watching and finding some of the Algarve’s
most untouched beaches.
Excellent location and infrastructure
Investment in infrastructure in the last decade has paid
off with the eastern Algarve now linked to Spain by a
modern highway, the A22, which, in turn, links to the cross
European road network. This now makes it an ideal place for
a weekend holiday both for local and international visitors.
The area also benefits from a warm climate.