Portuguese market continues to grow-100708

UK-based investors are continuing to buy overseas property in Portugal, according to a new report.

Homes Overseas magazine stated that the European country has so far avoided the worst of the economic downturn which has hit the continent.

The publication said that house prices are either stagnant or falling in many parts of Spain, whereas Portugal is continuing to see growth in the market.

Homes Overseas commented: "Portugal appears to have escaped the bust cycle with average prices trickling upwards over the past year or so."

The magazine added that the Algarve remains a particularly popular area among overseas property buyers, along with Lisbon and the Silver Coast.

Earlier this week, the investment potential of Portugal was highlighted by the Country Life publication.

According to the magazine, house prices in the Silver Coast region are about 30% lower than those in the Algarve.

However, rising interest and development in the area is fuelling growth in the market, leading to an increase in property values.