Portugal a 'safer' market to invest in than Spain

Portugal is set to replace Spain as the place for UK investors to buy property, it has been claimed.

Investment consultancy Property Frontiers remove made the suggestion after many agents reported an increase in activity and sales in the country during the second half of the year.

It cited the growing economy and rising house prices as the reasons many people are making the switch, alongside a realisation from some that "Spain's [property] boom had most definitely turned to bust".

David Cox, director of Property Frontiers, believes that Portugal represents a safer opportunity out of the two markets and as such it is no surprise that many investors are moving to the neighbouring country.

"Portugal is by far the least risky of the two markets, and if there is one thing the current buyer is that is risk averse," he said.

"Those who would normally choose Spain are now looking at Portugal."

The European Commission has predicted that Portugal's economy will grow by 0.3 per cent in 2010, rather than the 0.8 per cent fall it had originally stated.

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