Portugal is beginning to take off again after a few years of more modest value increases (especially outside the Algarve). It has the climate, the scenery, the lifestyle and the economy to rival any of the other favoured destinations such as Spain or France. Unlike Spain, though, it has suffered much less from overdevelopment thanks to the more restrictive planning laws in Portugal and yet property is still remarkably affordable.
The Silver Coast, just north of Lisbon, offers ridiculously good value, even better than the average for the country which is €2,517 per square metre as opposed to €18,108 in the UK and even €5,160 in Spain. Properties in Portugal also rent out better than many Spanish and French properties, yielding 5.72% on average. France manages 4.02% and Spain a measly 2.87% (largely due to the bundance of competition in the country).
Prices have not risen anything like as fast as in the UK or Spain which, to me, suggests they are overdue some increases. Portuguese property managed, on average, merely 14% in the last 5 years - Spain achieved 80% and the UK 59%. Come on Portugal - catch up!
