Well I agree that most of Europe has some challenges ahead of them in the property market, I also agree that investors are clever enough to plan well and invest carefully in the right area. Although the current market in Portugal is a little flat, I personally feel that’s when the best investment opportunities are to be had, not just in Portugal of course. When the prices are flattening out or indeed dropping as they are in the UK, then there could be some good opportunities if you have some spare money around, maybe pick up a bargain.
As for the rental market in Portugal, I feel and I speak from experience that certain types of rental are in quite strong demand, not the holiday villa crowd. medium term rentals for people testing the water while deciding if they want to move to Portugal, normally rent property for one or two months before buying or while looking around for a property. We (as a licensed agency) deal with rentals and normally don’t have enough good properties to meet the enquiries we get.
so if you have a small rental cottage that doesn’t need to earn a huge amount, or has cost you not a lot to buy, then this could be a good little investment but its not going to be a all signing all dancing investment of the year opportunity!