Economic uncertainty, doubts over the Euro, and widespread doom and gloom are all lining up to make 2012 an interesting year for the property market in Portugal.

That said, hard times can sometimes be good times for those with money to invest in property abroad and there are certainly bargains to be had by those who know where to find them.

The Euro crisis will, quite rightly, make some people hesitant about buying property in Portugal at the present time. If the Euro disintegrates and Portugal reverts to the Escudo, currency devaluation could result in properties being worth far less in a global sense than people paid for them. Nobody truly knows what will happen, so there is a certain element of risk in investing now.

Nevertheless, those who follow the Portuguese news will know that Portugal has actually made some very good progress since the bailout of 2011. The country has reduced its deficit way in excess of the target set by the bailout troika. In addition, Portugal’s most recent bond issue showed that the country’s cost of borrowing had reduced, reflecting investor’s confidence in the nation’s ability to pull itself from the economic mire.

Further proof of increasing optimism in Portugal’s property market is provided by a recent report in the Portugal News, stating that estate agents have reported a three / fourfold increase in bookings to view properties in November / December 2011, compared to the same period in 2010. It is likely that the large number of properties being offered at significantly reduced prices has attracted many of these potential purchasers. Local newspapers frequently carry adverts of properties with discounts of up to 35 per cent.

Another factor is the current improvement in the sterling / euro exchange rate, which at the time of writing had just reached a peak of 1.21. This makes Portuguese property more affordable for purchasers with sterling to invest than at any time in recent years.

As 2012 begins, it is certainly a buyers market for people who dare to invest under the cloud of Euro uncertainty, so potential investors should be sure to shop around, look for discounts and not be afraid to chance cheeky offers.

Many areas, particularly in the East Algarve, have found themselves vastly over-subscribed with good quality condominium-style holiday apartments, many of which have been the subject of bank repossessions. It is worth keeping an ear to the ground in order to hear of any distressed sales. While bargains can be had in these developments, problems can arise relating to shared services, communal utilities and unpaid bills, especially in buildings where only a small percentage of units have been sold. When it comes to issues like this, there is no substitute for local knowledge, so long viewing trips, plenty of asking around and abundant due diligence is the order of the day.

While nobody really knows what 2012 will bring, Portugal still delivers on sunshine, slow pace and simple living. There’s no reason why a sensible, well-considered investment can’t work out for the best, even during these difficult times. However, those who wish to hold off until more certain times will also find plenty of rental property in the current market – so there really is no excuse to delay getting on the plane and having a look around!

Start your hunt for a home in Portugal here…
If you’re searching for a Portuguese property, a good place to start is the Portugal Buying Guide’s new property search facility. To start your search now visit http://www.portugalbuyingguide.com/content/portugal-properties