Insurance News Archive

Portuguese new-builds 'more attractive than old'

The high quality of construction in Portugal has led new build properties to be more attractive to investors than older ones, according to property experts in the Iberian country.

While older properties are "lovely and quaint", and consequently attractive to tourists who might rent out an investment property in Portugal, they will also provide more maintenance problems, cutting the rental yield of the property, according to Quinta Sales director James Aitkin.

By contrast, properties newer than ten years old are better built and have lower maintenance costs.

Mr Aitkin said: "The properties that tend to be more attractive are newer properties. Newer properties that are being built are of a higher specification than possibly the UK in terms of dampness. The properties here now are so well built. The standard in construction is the best I have ever seen."

New properties also have features which are not generally found in older properties.

Mr Aitkin pointed out what the Portuguese describe as caves, lower ground floors with natural light which are used as cinemas, bars or playrooms.

With a predicted tourism surge of 300 per cent over the next seven years, he claims that demand for rental property outstrips the supply of good ones.

22 Jan 2008