The Swiss bank made a series of management mistakes, gaining a tarnished credibility and a new flood of speculations regarding the possibility of bankruptcy and a merger with its rival bank. Furthermore, Credit Suisse has been entranced in two recent scandals, has undergone restructuring and a change of CEO, and had the bank’s capital be consumed by harsh fines and severe judicial sentences.
Some analysts have gone even further and, with a flash from the past, compared the Swiss bank’s possible bankruptcy with the Lehman Brothers’ collapse of 2008.
Be that as it may, this current financial turbulence and the change in the property buyers’ market could, opposite to what is predicted, actually bring extremely positive benefits to Algarve.
Instead of keeping the money in bank accounts gathering dust, people are choosing to invest in luxury real estate more frequently with each passing day. Not only as a backup plan to protect their money against inflation but also as self-protection in case the banks do fall into ruin since, according to EU rules, only €100.000 are guaranteed.
The luxury real estate market in Portugal has been extremely strong and solid for the last few years. Algarve is undoubtedly a strong presence in buyers’ list of future investments — its location, climate, security and great prices are amongst the most favourable for business.
Investors are predominantly foreign, given that both golden visa and NRH programs have continuously brought new buyers to Portugal. At Exclusive Algarve Villas “we have witnessed a massive increase in mostly German & Dutch speaking markets for the past 12 months, as well as a keen interest from USA and Canadian buyers”.
Thus, the answer to the headline’s question is no. Credit Suisse’s probable yet still uncertain bankruptcy will not affect Algarve’s property market. On the contrary, it can provide an opportunity to those wanting to sell luxury real estate properties in one of the most sought-after areas of Portugal. At Exclusive Algarve Villas “the search for new luxury and exciting properties to sell is never-ending. Algarve is one of the best areas in the country and its ocean view properties are massively appealing and don’t stay in the market for long, with prices ranging between €1M and €10M”.