IL Postcard

Algarve’s Winning Formula

Date: 11/01/2007

November 2, 2007
Paris, France

Southern Portugal’s Algarve region has long been a favorite with tourists, boasting more than 300 days of sunshine a year, plentiful golf courses, 100 miles of coast, and wide sandy beaches. But now there’s another reason to look at investing in or around the Algarve coastal town of Portimão.

Portimão was the Algarve’s first resort in the 1930s, and the Praia da Rocha beach, high-rise apartment buildings, and plentiful amenities continue to attract visitors all year. The construction of a F1 track nearby looks set to make the resort an even hotter investment.
Private contractor Parkalgar is investing $250m in the racetrack project in Escampadinho, Mexilhoeira Grande, about 5 miles from Portimão. Plans include a 200-room five-star hotel and 160 apartments. Not to mention the technology centre to service the automobile industry. The track is expected to open in 2009 with seating for 140,000. Bidding will then start for a Formula 1 Grand Prix—and with it the strong possibility of attracting large numbers of sports fans, especially from Spain. The project has support at national and local levels, with regional authorities financing a new road link from the A22 highway to the track.

Larger than the old Estoril circuit that was used for Formula 1 races from 1984 to 1997, this track has been approved by the FIA and CIM (the bodies that regulate all tracks for Formula 1, Superbikes, and Grand Prix). Sustainable energy sources will help run the circuit, and a special waste water treatment plant is planned. Local authorities are convinced this project will create more than 1,000 new jobs and put the Algarve back on the map, giving it more global visibility.

If you want a piece of the action, you can still find reasonably priced properties in the area. Good financing options are available even to non-EU nationals, often guaranteed by insurance companies. For 80,000 euro you can get a one-bed apartment in a new development in Portimão—away from the roar—with just 10% down with Big Real Estate. For more details, visit www.thinkbig.co.uk.

Around 15 million people visit the Algarve every year, a figure that is expected to increase every year. This September, Faro airport saw a rise of more than 9% in passenger numbers compared to September 2006—the Algarve still offers opportunity for profit and fun.

Best regards,

Maria Savage
International Living's European Consultant