Whilst property prices in Portugal may have fallen over the last couple of years, one area of the country is bucking the trend. Thanks to a relative lack of supply and some excellent golf facilities, the island of Madeira actually saw property prices rise in 2010.
Property prices in Madeira rose in 2010
The latest figures from the National Institute for Statistics (INE) show that property prices in Madeira increased by 1.8 per cent between December 2009 and 2010 whilst values of the average Portugal property declined by 3.2 per cent in the same period.
Indeed, prices fell in every region of Portugal except Madeira.
Philippe Moreau, the project manager of Vilagiorgi, a holiday home development scheduled for construction in the capital city of Funchal, told the press that the Madeira property market has not suffered as much as mainland Portugal,ââ¬â¢ due to the limited residential inventoryââ¬â¢.
Golf facilities attracting tourists and investors
Jorge Botelho Moniz of Portuguese bank, Banco Espirito Santo, believes that the Madeira property market is capitalising on its image as a quality tourist destination, offering ââ¬Ëhigh quality homes in exclusive breathtaking locationsââ¬â¢.
In addition, improving golf facilities are helping turn Madeira into a high quality location on a par with Portugalââ¬â¢s other main golfing destination: the Algarve. Charles Weston Banker of Savills International said: ââ¬ÅAlthough only around 40 per cent of homebuyers play golf, itââ¬â¢s still considered essential to be in an attractive, well-maintained golfing area, which will yield good rental prices.ââ¬Â
There are three golf courses; two on Madeira and one on the neighbouring island of Porto Santo. And, construction of a new 18 hole course designed by Nick Faldo is now underway in Ponta do Pargo, on Madeira. Plans for a 68 room, 5 star hotel adjacent to the new course have already been submitted.
