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Investors in Portuguese Property Looking to Settle Into Local Communities - 24 August 2010

British investors have been expressing more interest in buying Portuguese property in recent months, the U.K. press is reporting.

Areas near the cities of Lisbon and Porto have been most popular, says a local agent, as British looking for weekend homes want to stay close to the major airports. The town of Tomar is a prime location for second homeowners as it’s only a two-minute ride from the Lisbon airport and is near Castelo do Bode Lake, a thriving spot for water enthusiasts.

New buyers are also looking to stay out of the “English ghettos,” i.e. neighbourhoods that are primarily British, the Telegraph reports, and instead would rather integrate into the Portuguese culture. This new crop of foreign homeowners already speak a little of the Portuguese language and are looking for a “ready-made social life.”

For many of these buyers, this community-minded way of living means owning near or on a golf resort, like the Quinta de Lago, where prices average £750,000 and have barely wavered since the recession started.

Unlike it’s neighbour Spain, Portugal’s overall economy has held up rather well, but experts say that those looking to buy should still be thinking long-term. Making profits on any European property is still years away.

Experts also suggest that buyers do their homework and study up on Portugal’s strict renovation laws before buying. However, potential investors shouldn’t underestimate the value of an easy home improvement project. By spending only £10,000 to £40,000 in renovations, investors can raise the value of their home by £100,000.