The home of the Portuguese overseas property market, and the most developed coastal strip in the country, the Algarve still nonetheless feels underdeveloped compared to neighbouring Spain's largely chock-a-block southern coastline. And yet the Algarve still manages to offer the range of resorts and activities required to make it truly competitive on the European property stage.

One of the biggest players on this property stage, especially in Portuguese terms, is property developer Oceânico.

Now the proud owners of two luxury resorts, in Lagos and Praia da Luz, and with four further four- and five-star projects in development on the Western Algarve, not to mention others on the Silver Coast and in the Azores, Oceânico is doing a seriously convincing job of transforming the Portuguese property market.

"We don't think of our property developments in terms of competing with others in the Algarve," says Oceânico Golf Course Project Manager Steve Richardson, "but as making the Algarve a stronger destination to compete with other countries."

Add to their portfolio the recent purchase of five world-class golf courses in Vilamoura and the development of the Amendoeira Golf Resort – a five-star 640-acre development near Silves, with championship courses designed by Nick Faldo and Christy O'Connor Jnr and of which members will have access to all seven courses – and its not difficult to see why this company is attracting the attention of overseas buyers to the Portuguese property sector and keen golfers alike. 

"Portugal is ripe for investment at the moment," says Bill Barratt, a non-executive director at Oceânico. "There's just something so natural about it still."

Indeed, the Portuguese property market is one known for its stability and cash appreciation remains strong. And the Portuguese government's staunch development policy, ensuring that the country fends off environmentally damaging over-development, certainly does nothing to hinder the investment potential of the Portuguese property market.

"Building regulations are getting tough now," says Gerry Fagan, Director of the Oceânico Group. "There is bureaucracy preventing development a certain number of metres from the seafront, and rightly so."

Oceânico's method of property development seems to make a point of working with Portugal's natural beauty and traditional character. For example, the 146-apartment Estrela da Luz resort in Praia da Luz is located just 200 metres from the beach and stone streets and passageways of the old village – in fact, the development leads on almost seamlessly from older houses and apartment blocks. Tucked behind these, the resort offers three swimming pools, a jacuzzi and sauna, restaurants and bars and a gym and tennis court – backed by red mountains and turquoise sea.

Aware that property over-development can ruin areas and indeed, golf courses, Oceânico's Amendoeira Golf Resort will include a comparatively meagre 650 units. The Phase One Amendoeira residential complex will be positioned on a hillside, set back from the golf-course in a village style complex yet with views over the greens; completion of the first properties and two golf courses is scheduled for spring 2008. Newly released Phase Two property is a mix of 92, two and three-bedroom apartments, 12 three-bedroom villas and 12 of Oceânico's new Prestige properties. Two- to three-bedroom apartments are priced from 495,000 to 595,000 euros, and three-bedroom villas with private pools from 950,000 euros; Oceânico's Prestige four- to five-bedroom villas are priced from 2 million euros.

Commenting on the launch of Amendoeria, Simon Burgess, director of the Oceânico Group, said: "With Oceânico's purchase of the five courses at Vilamoura earlier this year we have created the best golf and property investment opportunity in Europe.  No other company can offer membership of seven golf courses, each designed by a top golfer or golf course designer."

He continues: "The location is stunning, with the whole development created to complement the local environment, while Faro airport is just 35 minutes away.  Phase 1 of the development has proved extremely popular with investors, and Phase 2 will build on this."

Having made such a splash in the Algarve, are Fagan and Burgess reluctant to turn their attention to other areas?

"We've done what we can in the Portuguese Algarve," says Fagan. "Our next move will be to focus on the Silver Coast and the Atlantic Azores islands. You won't get your typical sun holiday there but it's a centre for whale watching and scuba diving. The natural environment is beautiful with hundreds of indigenous species."

Time for tee, anyone?

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Jo-ann Hodgson was a guest of Oceânico www.oceânicogroup.com