Interest in Portugal from visitors to TheMoveChannel.com soared over the last month, with the stunning Iberian paradise crashing into the top ten to take the number 5 slot in our ‘Top of the Props’ chart…

After steady growth in 2007, 2008 is expected to bring a healthy 12% growth to Portugal’s property market, and with the double tax arrangements between the UK and Portugal, buying property has never been so simple for overseas investors.

Property prices may not as cheap as the well publicised Eastern European countries, but there is no doubt that Portugal is a well established and flourishing marketplace with a stable economy. Capital growth and rental yields for investors are showing higher returns than elsewhere in Europe, mostly fuelled by investors rather than holiday home seekers.

James Aitkin, Director of Quinta properties in the Algarve, recently commented: "Popularity, purely on property prices, has gone through the roof. There are advantages over Spain, such as the lack of high-rise developments along the Algarve coast. While not everybody may be so concerned about the architectural view, those who are, it would seem, will find Portugal preferable”.

Spanish over-development 'helping' Portugal

Another factor working in Portugal’s favour is the perceived overdevelopment of Spain, which has allowed the smaller Country move into the spotlight.

Mark Bowen, UK sales director for property firm Profile Europe, subscribes to this view: "This is not to say that Spain is not a good investment, but rather that Portugal is flavour of the month and in my opinion is on the crest of a wave which will see regions increase dramatically over the next five years."

Success for Portugal's property market has been tipped by others too. These include Sunscape properties, which last year forecast that the next seven years would see a 300 per cent rise in property prices thanks to the development of new attractions such as a new Formula One motor racing circuit, more golf courses and an international theme park.

With so many positive predictions for the future, it may also be interesting for investors to hear that the legal side of matters is similar to English law, with Mr Aitkin stating that: "the legal system is very similar to the English as long as you buy a freehold or a flying freehold. You can buy a property unencumbered once the lawyer has checked out if there are any charges on it and that there is a land registry."

The Blue Coast: An emerging hotspot for 2008

One particular area of Portugal attracting positive investor buzz at the moment is The Costa Azul, also known as the Blue Coast - a beautiful and untouched stretch of Portugal’s west coast. Situated a mere 20-minutes away from Lisbon, the Costa Azul is great place for city breaks as well as beach holidays, and prices are often half of what you would pay in the Algarve.

A spokesperson for ForeignPropertyBuyer.com recently noted: “House prices in the region were set to grow significantly as a result of increased demand for rental accommodation. This is attributed to the creation of a new airport in Alcochete, which is scheduled to open in 2012. The improved accessibility and its effect on tourism could make the area perfect for overseas investors.

The spokesperson added: “Furthermore, the region is much more affordable than other parts of Portugal, such as the Algarve. The Blue and Silver Coasts offer an attractive alternative for overseas property investors with plenty of good opportunities to be found".

Other risers and fallers

The top 4 entries in the chart remained the same for the first time since Top of the Props was launched, With France, Italy, Spain and Bulgaria consolidating their positions as TheMoveChannel.com’s most popular destinations.

Brazil and Cyprus jumped into the top 10 again, with both countries moving up five places to 8^th and 7^th respectively.  The UAE continued its steady climb up the chart, advancing six places to 11^th, whilst Canada, Germany, Albania and Hungary continued to attract a lot of interest from TheMoveChannel visitors.

Countries which fared less well this month include Morocco (Down 8 places to 17th), Thailand (down 4 to 12^th) and India (down 3 to 13^th).