It has been a busy summer and in the past few months the shift in the profile of buyers has been more pronounced and interesting than ever. Traditionally, 65% of our buyers are clients that we have worked with previously, but over the summer new faces, who have not previously owned in Quinta do Lago, have begun to dominate our inquiries.

The growth of Faro International Airport, with new direct flights from key hubs, such as London City Airport, has seen our market grab the attention of equity rich city financiers and captains of industry. In addition, interest in our Quinta do Lago properties has grown among Russian and Angolan investors over the summer.

These new, independently wealthy clients are not reliant on mortgage markets to fund their purchase and this has kept interest high in the very best properties in the local market. Exceptional properties that are in enviable locations and offer privacy and security are proving popular with these buyers.

In a further show of confidence in the strength and stability of the Quinta do Lago market, property owners continue to invest in building new fabulous homes to enjoy with their family and friends. Driving around the resort it is clear that the area is a hive of activity. A recent count suggests there are now no less than 36 projects under construction or have recently been completed in Quinta do Lago.

As the busy local Savills associate and leading agent for many years in Quinta do Lago, at Quinta Properties we are optimistic about the future and continued success of the area.

Related posts:

1. BA launches London City Airport Flights to Faro
2. Cool cash vs warm sunshine…
3. Quinta Properties Market Report – Spring 2011

We were delighted to be told the news that we had won such a coveted award this week. The Award is in recognition of our successful track record in Quinta do Lago, our strong client partnerships and our committment to investing in marketing. The International Property Awards, now in its 17th year, has a judging panel of 80 property professionals and has become recognised as the highest standard of excellence throughout the global industry.

Related posts:

1. Is Your Real Estate Agent Licensed?
2. Quinta Properties Market Report – Spring 2011
3. International valuations

The Market

Well, we have been busy. Alison and Kerstin handle new offers and try to negotiate sales almost on a daily basis. There are plenty of cash rich buyers looking to invest but they are very specific in what they are looking for.

Many buyers insist on buying only the best properties in the best locations, which always achieve top prices. Others are looking to buy only what they would consider to be “a good deal”. From our point of view, buyers are still keen to invest in what is seen as a good and safe investment – namely Quinta do Lago, Vale do Lobo and the areas in-between. At present, inquiries for other areas are much rarer.

The good news for buyers is that there is a great deal on the market and there is more choice of beautiful, quality property than in recent history. The downside is that not all vendors are as keen to negotiate as they may expect.

Analysing our sales over the past three years, if only looking at our bottom line, not much has changed. Average yearly sales for the past few years have been remarkably similar. To date, we have done about as many sales as previous years, and average prices have also not changed significantly. Some exceptions have balanced out our averages; a few properties have sold at low prices as vendors were keen to move on, however, at the same time, some properties have sold at top prices because as always, prime locations achieve a premium.

There is frustration in the market but this is a result of the large number of properties that are available for sale, and not because properties are not selling – because they are. Vendors do need to look closely at their asking prices and take the advice of their agents. We are not suggesting to drop prices, but to price realistically.

Recent Quinta Properties marketing efforts

During the Easter week, we launched the 8^th edition of our Buyers’ Guide Passion for Property, culminating in our biggest ever annual party. It was a huge success and we were absolutely delighted to see well over 300 Quinta Properties’ clients walk the red carpet at our James Bond themed event.  Throughout the evening the champagne flowed and exquisite delicacies were prepared and expertly served by the talented team from the two Michelin star restaurant, Vila Joya. It was a wonderful evening – visit the Quinta Properties website to see a selection of photographs of our clients looking fabulous.

We are in the process of sending the Guide out to all of you – should you not receive it in the next week or so, please do let us know!

The new billboards are up.  On the day of our James Bond launch party, new billboards were erected around town featuring Quinta Properties as Special Agents and replacing the Best Sellers signs. This campaign has successfully put a smile on people’s faces.

Furthermore, and just in time for our annual party, we renovated our offices and hope to have achieved a fresh look in which our clients will feel welcome and well looked after. Please do pop in when you are next here – the coffee is still as good as ever!

Next on our busy to do list is the launch of our new Quinta Properties website and branded email marketing. We are working hard on designs and improving technical capabilities to help buyers find and navigate the website easily; and importantly we aim to make the website even more attractive and interesting so that we can continue to drive inquiries to our professional sales team.

In Summary

We are confident in our market. Our area remains in demand and our success is reflected in the fact that we continue to be Savills’ Number 1 International Associate for the 4^th year running.

As a result, we will continue to invest in marketing, our team and our business so that we can provide both our vendors and buyers with the very best service. We are incredibly grateful to all of our clients for their continued support and loyalty and we are exceptionally proud of the fact that more than 65% of our buyers continue to come through referrals and repeat business.

If you would like to contact us with any feedback on this newsletter, we would welcome that. If you would like to discuss your own property needs, please do call or email us.

Alison and Kerstin

Related posts:

1. Passion for Property Buyers’ Guide 2011 Launched
2. Quinta Properties’ Annual Party Leaves Guests Shaken and Stirred!
3. Is Your Real Estate Agent Licensed?

The grand size of the villas and apartments is truly impressive; befitting the grandeur and exspanse of this outstanding development. The location of each property ensures that each benefits from the stunning views of the Quinta do Lago North Golf Course and/or The Key’s very own lake. Meanwhile, the architecture and interior design of these homes is impeccable, echoing chic Americana glamour.

The Keys is due for completion in 2011 and although its plots are not yet released to market, this hotly anticipated resort is expected to prove extremely popular with Quinta do Lago’s most discerning home buyers.

Please do not hesitate to contact us on +351 289 396 073 for more information on The Keys.

No related posts.

Current state of the market

To continually innovate and improve on our service, and ultimately to achieve more sales, we have analysed the market and our database. The resulting data confirmed our feel for the market but still made interesting and impressive reading.

Quinta do Lago is clearly still buzzing and moving, and we are selling more houses than last year – sales are up 17% from 2009. For our vendors, we have also achieved an increase in the average sale price for Quinta do Lago villas (excluding apartments and small town houses), which rose by 5.7% this quarter.

The majority of our buyers are UK residents, who continue to represent 63% of purchasers. Given this dominance, and the improving Sterling, our marketing efforts will remain focused on the UK market to continue to do what is best for our vendors. This includes developing the role of our website, which is growing in popularity and has already delivered 10 percent more sales leads compared to last year.

Despite the good news that average monthly sales are increasing we cannot advise enough that it is the homes that are in top condition that prove most popular with buyers.  The global recession has seen a more cautious buyer emerge, one who is buying to use the property themselves over the medium to long-term. As a result they are seeking quality and expect greater value from their investment. There is a lot of choice on the market and with so much choice buyers are going for the best properties.

The fact that prices have remained relatively stable at the top of the market in the year-to-date also demonstrates the financial strength of our Quinta do Lago vendors. Forced sales have not been a feature of the local market. Therefore, while buyers are more discerning they are finding that prices have not dropped by the sizeable amounts that they have in other destinations.

Top Tip: Buyers are very keen for new, large luxury villas at the top-end of the market. We have sold all that is available in Quinta do Lago so there is now a shortage of such well-equipped, sophisticated properties that we can sell at top prices. If you have the means and the interest it would be worthwhile consider building such a project.

Those owners, who do seek to leverage their property investment throughout the summer rental period are experiencing a buoyant season, which is on par with 2009 activity. Select Resorts, a Quinta Properties Savills’ Associate, has reported that accommodation in key Quinta do Lago locations are at capacity for August 2010.

Outside Quinta do Lago

From our point of view, the story outside Quinta do Lago continues to be slightly different. Properties are taking longer to sell and suffered falls in demand as the recession took hold. The situation has not yet improved and we expect the trend to continue in 2010. Again, it is the best properties in the right locations inside and outside Quinta do Lago that are attracting interest from buyers.

Forecast – the next six months

Cash remains king in Quinta do Lago. Many buyers will still find mortgages slow to arrange throughout 2010. Therefore, as we have seen in the first half of this year, vendors receiving offers from cash buyers should consider these seriously as mortgages are hard to obtain and at best very slow to arrange.

Help us to help you – floor plans

Times have well and truly changed in Portugal and houses that are not built according to approved plans, or have unlicensed alterations, will be difficult to sell. Buyers and their lawyers are insisting that properties are legal prior to purchasing. Therefore, approved and stamped floor plans will be needed from all of our vendors. Please forward a copy of your plans to us as a matter of priority.

If an offer is made on a property that is later found to not conform to legal requirements at absolute best, buyers will seek to renegotiate a lower price and lawyers will demand high retentions until licences are obtained and paperwork is updated; that is if the sale does not fall through entirely.

We will also be including these approved floor plans in our new brochures. Please ask your lawyers to e-mail the plans to margarida@quintaproperty.com or post them to our office. We are also happy to collect plans when ready. If alterations have been undertaken to your property then it is important to have them legalised – there is a great deal on the market at present and with so much competition it is those properties with all the documentation in place that sell.

Our marketing efforts this summer and beyond!

To further identify where our clients are from we have dissected our data down to UK postcodes, so we know exactly where to focus our marketing efforts. We will be working with our UK Savills colleagues in these key locations on joint activities to generate qualified leads, such as a planned Champagne Party in the UK with the Savills Esher and Cobham offices.

We have had a very busy and exciting quarter when it comes to marketing. More than 10,000 copies of the Property Guide have now been distributed and we are already planning the 2011 Property Guide and Annual Launch Party. Our billboards in the area have been a great success and we continue to invest in what works best for our clients, including print advertising, website search engine optimisation and placing our properties on other websites.

On a further positive note, as our business grows we were thrilled to expand our team with the appointment of Sandy Townsend to lead our Marketing and Business Development. Australian-born Sandy is a journalist and marketer, who arrives to us after ten years working in London’s property industry, latterly as Director – Head of Marketing and PR at top ten UK property firm, Lambert Smith Hampton. As a writer, Sandy has been published by newspapers such as the Financial Times and Sunday Times. 

As always, timing is everything and Sandy started just in time to attend the annual Savills International Marketing Conference in Central London with us. We were joined by 35 colleagues from across the world. These events are always useful in sharing ideas and marketing best practice. With 200 Savills offices worldwide we had much to discuss. A highlight was a tour of the exclusive One Hyde Park involving Candy&Candy. Savills are agents for the scheme, which was absolutely stunning. It was good to see that the top-end of the market in Central London continues to thrive; as Quinta do Lago always follows prime Central London trends.

Fast Cars and Entertaining

If you are looking for some pace and excitement this summer Algarve Racing has offered our clients the opportunity to purchase time in one of the VIP lounges at the Autodrome International Algarve in Portimao. Corporate events, kart racing and driving experiences, which include being driven around the track by a professional driver, are also on offer. Contact us for more information.

As you can see, all is well. We are revved up, active and as always we welcome any comments you may have on this letter or any of our other activities. We are very grateful for your ongoing support and in recommending us to buyers. We all benefit! Please do continue to mention us to your contacts. Finally, we don’t have as much time as we would like to update all our vendors so please don’t hesitate to call or pass by – it is always nice to you.

We all hope that this finds you well and we are looking forward to catching up with you this summer – as usual our office will be open Monday to Saturday so please do stop by and say hello.

 Kerstin Dias Buechner

Alison Højbjerg Buechner

No related posts.

Over 380 people attended this years launch party and it was a great success and a wonderful opportunity for us to catch up with many of our friends and clients. Chef Koschina and Chef Matheu and their team from 2 Michelin Star restaurant Vila Joya provided our guests with a sumptuous array of amuse bouche and champagne throughout the evening and it all ended far too early.

We would like to thank everyone who attended, helping us make this annual event such a great success!

Picture Gallery

[Show as slideshow]

[View with PicLens]

No related posts.

Why invest in Portuguese Property? This is a basic question that requires a solid answer before launching into a substantial commitment in a new country, particularly with the current bleak short-term outlook around the world. The potential on-going rewards, whether through direct use from owner occupancy or diverse forms of rentals, can bring in an excellent return with potentially promising tax treatment in Portugal. Let us examine some of the underlying factors that outweigh the short-term doom and gloom that bombards us daily on the evening news.

Demographics

The heart of future growth lies in the demographic reality of an aging Europe. We have all heard about the “greying of Europe”. A recent report in the journal Science revealed a picture of a fast-ageing population. Life expectancy for British women, for example, has risen from just 50 a century ago to nearly 80 now and by 2080, it is expected to rise to 100.

The consequences for Society are startling. As it impacts on our youth-dominated culture, the aging population will spark a seismic change in the landscape, making all the familiar features unrecognisable. In all areas of life – pensionable age, crime patterns, popular culture, politics and family relationships – nothing will be left untouched.

Over the coming years, as the “baby-boom” generation retires, there will be a tide of seniors migrating south to the warmer, more hospitable climates. In neighbouring Spain, demographers predict that the number of foreign property owners will increase by five fold in the next decade alone. For a tiny country like Portugal, this wave of retirees translates into a huge influx of new home owners looking for their place in the sun. Not only will traditional destinations such as the Algarve or Madeira remain popular, whole new regions of the interior will be discovered by this coming invasion of greying Northern Europeans.

Expansion of Residential Tourism

The term “Residential Tourism” is commonly used and refers to a specific type of tourist: one who chooses non-hotel accommodations, usually owned, rented or lent property. Contrasted with vacation tourism, the residential tourist typically stays longer and/or more often, uses an owned or rented residence for accommodation and has a leisure goal connected with a certain quality of life.

In 2004, this foreign investment in Portuguese property equalled overall income from general tourism. While such studies in Portugal are few and far between, our neighbours in Spain have a tourist industry similar to ours. Currently, Residential Tourism accounts for 25% of foreign investment in Spain and 20% of new construction is purchased by non-residents.

“Low-Cost” Air Travel

The advent of low-cost air travel will have profound implications on “Residential Tourism”. Instead of saving up for one expensive holiday a year, low-cost travel means that purchasing a second home in the Algarve becomes practical, whether for long weekends or occasional lets to help meet expenses. “Low-Cost” means frequent travellers which inevitably will prove a boon for both conventional hotel tourism as well as the residential variety.

Climate

Although the Algarve is not on the Mediterranean, it does have a Mediterranean climate with mild, wet winters and dry summers. Basking in sunshine at the southernmost tip of Portugal, the Algarve enjoys perhaps the best climate in Europe. With only a short period of rainfall (it normally rains between November and March) and long hours of sunshine (the highest in Europe), the Algarve region is truly blessed.

Due to its relief and geographical position, the Algarve is influenced climatically by the European continent, North Africa, the Atlantic Ocean and the Mediterranean. The maximum temperatures in the Algarve vary, throughout the year, between 15ºC and 31̊C and the temperature almost never falls below zero in the winter.

Average Temperatures in the Algarve:

Air temperature in Summer: 24ºC to 29 ºC

Air temperature in Winter: 15ºC to 18ºC

Seawater temperature in Summer: 21ºC to 24ºC

Seawater temperature in Winter: 15ºC to 19 ºC

Capital Appreciation

For over 50 years, property has proved to be the most consistent vehicle for investment, with property prices doubling every 7-10 years. Since the inception of statistical surveys, property has proven to be a great medium to long-term investment, regardless of short-term market fluctuations.

Unlike almost any other asset, you have a wide range of long-term, low-interest finance available to help purchase your property. You also have the added benefit of being able to obtain income throughout your ownership of the property.

Conclusion

These basic structural factors add up to a surprisingly bright future. Despite some of the immediate problems that dominate the headlines, these pervasive underlying realities should be the driving force to continuing growth. In the end, the current global downturn may prove to be a short-term opportunity rather than apocalyptic scenario so often painted.

Dennis Swing Greene is Senior Partner and International Fiscal Consultant for euroFINESCO s.a. Private consultations can be scheduled at our offices in Guia (Albufeira), Lisbon (Chiado) and, starting January 2008, in Funchal (Sé), Madeira. In the Algarve, call 289561333, in Lisbon, 213424210 or in Funchal at, 969102813. Our e-mail is: info@eurofinesco.com, or on the internet at www.eurofinesco.com.

No related posts.

Alison made a short speech and reminded everyone that life is not all about how high you jump, or even how fast you run, its all about how well you bounce!

It was a fun evening and was celebrated with boxes of pink Champagne, and first class catering from around the world.

A thousand balloons and impressive ice sculptures helped make the event quite festive!

Alison, Kerstin and the Quinta Properties Team would like to thank all who were involved in organising the event.

Picture Gallery

[Show as slideshow]

[View with PicLens]

No related posts.

Well, it was business as usual at Quinta Properties in 2008 – that is until October. And then things became a little quiet. While many clients stood back in shock and watched the value of their shares plummet, others cut their losses and hoped that the banks in which they parked their cash would not go belly up.

Now, that is all history and so where do we stand today? Without a doubt the number of transactions has reduced in the last quarter of 2008.

We can see a clear pattern and it may be hard to stomach, but opportunistic buyers are looking for distressed sellers. Equity rich investors and speculators are very active in the market, targeting distressed vendors. No doubt about it – cash rich vultures are the first to benefit.

Having said that, many offers are being turned down and many of our vendors actually would rather take their property off the market than sell at a discount to the price they paid. It seems many of our clients are well placed in wealth terms to weather the storm. This will also aid in supporting market prices and stop prices form dropping and as another side effect, reduce the risk of over supply.

All in all normal market forces are at work and there is by no means a state of emergency in Quinta do Lago.

As ever, it is the rarer properties at the top of the market that continue to attract most interest. Not only discounted properties but the larger, new and well located properties are in demand. Winners in the current market will be anyone with equity who can buy in the next 6 months. Forget mortgages.

We see that investors are watching the market very carefully as some unfortunate vendors are forced to sell cheap, they will make their first moves, and bring about a recovery in demand. Whether it’s the kind of demand our vendors want, is of course questionable.

We are busier than ever at Quinta Properties.

During difficult times, many may have resigned themselves to sitting back and hoping that things may improve soon. At Quinta Properties we feel we just need to work that much harder.

Recent events in the global marketplace have encouraged us to focus on business efficiency. We have re-evaluated all our marketing efforts and streamlined them to work more effectively for our clients in this particular niche market. Naturally we continue with local and international press and advertising, local billboards (which you may have noticed), regular targeted mailings and a sales team of 6 who aggressively continue to make every effort to find buyers for our vendors’ properties.

Our Buyer’s Guide ‘Passion for Property’ goes to print this week and we hope to have the regular fun Launch Party sometime during the February half term holiday. This is our biggest as well as our most effective marketing tool. Initial print run 10.000.

New Staff

We are delighted to announce the arrival of Margarida Coelho and Frank Schmitz to our team. Frank and Margarida bring to Quinta Properties a wealth of experience in the property market.
Frank joins us from the German property market software provider and naturally, understands the need for effective communication in the times ahead. In fact, since Frank started work on our website in October we have rocketed up the Google search ratings, resulting in a clear increase in new leads. Frank is also developing new markets for us as the numbers of English and Irish buyers decrease. At heart Frank is a sales and marketing man.

Margarida has gained much experience and knowledge in the Algarve property market over the past seven years, she specialises in the intricacies of local government regulations and possesses outstanding administration skills.

Both Frank and Margarida are highly motivated and multi-lingual, and we have every confidence that they will be valuable members of our team.

Invitation to all our Vendors to Update us on your current Status

To be able to give all our vendors the best possible service in these changed times, may we invite you to let us know your current status. Perhaps you are fortunate enough to be relaxed about selling in these tricky times. However, if you are keen to sell and would accept a discounted price, to invest the funds elsewhere, please do let us know this. As mentioned we do have buyers for this type of purchase.

Currency Fluctuations

Please have a look at the price of your property and especially the currency in which we are marketing it. Sterling vs. the Euro has fluctuated a great deal over the last 6 months, and we want to make sure you are happy with the status quo. To avoid any confusion we would kindly ask you to notify us in writing of any currency and price changes.

Opportunities in a turbulent world

Please register with us, should you wish to be notified of any “good deals” coming onto our books this year. As many of our clients feel that property is still the best place for their money, do please let us know if you are looking to further your investments in the area. We are of course at your service! Please contact alison@quintaproperty.com or kerstin@quintaproperty.com!

New Legislation

As of 2009 all properties must have an Energy Certification. This is a system by which the energy efficiency of properties is graded much like your electric equipment at home, with grades from A to G. Properties cannot fail but if a property is to be sold via a local Portuguese Notary, this certification will be requested. The grade your property receives may have an impact on your annual property tax (IMI). For more information please contact your local lawyer.

At Quinta Properties we firmly believe that in turbulent times there exists opportunity so we have invested time and resources on ensuring that we are best placed to meet these challenges. The weak have been pushed aside and the strong-willed have risen to the challenge.

Please feel free to comment on this article using the comment function below.

With our very best regards,

Kerstin & Alison
Directors

No related posts.