The country's northern landscape is characterised by mountains in the interior areas and the south by rolling plains between the Tagus and Algarve (the most popular region with British tourists) areas. Recognising the importance of its landscape and ensuring that the country continues to attract thousands of visitors each year and doesn't suffer from the same fate as over-developed European destinations, Portugal has many conservation areas and restrictions on property development.

As well as one national park, the country has 12 natural parks, nine natural reserves, five natural monuments and seven protected landscapes as well as numerous UNESCO World Heritage Sites. Besides its stunning landscape, Portugal also attracts hordes of holidaymakers due to its climate, which is one of the warmest in Europe. Annual temperatures average 13oC in the north and 18oC in the south. The south is generally warmer and drier than the north of Portugal, with the northern climate being categorised as Oceanic and the south Mediterranean. In the spring and summer, much of the country is sunny and warm, with temperatures reaching 37oC in the hottest summer afternoons, yet it can be rainy and windy in the autumn and winter months.

Portugal is one of many European destinations to have experienced increased levels of tourism and investment over the last few years – with the property market being a key beneficiary. The country has been among the UK's top 10 destinations for the last 30 years and recent research shows that property prices in the country have risen by as much as 17 per cent over the past five years. An increased number of regular low-cost airline flights from the UK to Faro, in the popular Algarve region, have helped push up passenger numbers at the airport, resulting in more and more tourists visit the area each year.

Portuguese roads have also been improved to take account of the increased traffic levels and both the government and private companies have undertaken a programme of ongoing investment into Portuguese infrastructure. "The opening of the extension to the A22 motorway in 2003 has significantly helped access to the western end of the Algarve," says Nikki Loker from the Oceanico Group. This investment has not only come in the form of transportation improvement but in the development of quality property projects, leisure facilities and even international schools for those looking to make a permanent move to Portugal.

Rob Shaw, Marketing and operations Manager, for Spanish Algarve Properties Ltd, says: "Portugal has always been a favoured destination for those looking for a holiday home, but has long lived in the shadow of Spain. However, the last year has seen a dramatic rise in the number of Portuguese property sales, and the shrewd investor is starting to realise that Portugal in this current climate offers far more. With an average price of 3,645 euros per square metre, property in the Algarve is among the most expensive in the country and it is estimated that the potential growth in the tourist hotspot over the next ten years could reach an impressive 360 per cent.

With many overseas property buyers now being priced out of the Algarve market and building restrictions preventing new development on the Algarve coastline, new property investment opportunities are opening up in less established areas such as the Blue and Silver Coasts near Lisbon. Indeed, the Alentejo region has recently been growing in favour due to the region's upgrade in infrastructure investments for when Lisbon's main airport moves to Ota in 2012. Wherever you buy in the country, Portugal's property market is certainly one of the most prosperous in Europe. "Portugal has had a tremendous couple of years which have seen it firmly re-establish itself as one of the best European destinations to invest in," says Martin Bowen, UK Sales Director for Profile Europe (UK) Ltd. "It is obviously further benefited by its ideal geographical location to the UK, superb climate and its recognition of being one of the leading golf destinations in the world."

Related articles:
How to buy property in Portugal
Portugal investment sees thousands of jobs created
Property in Portugal remains popular

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Article published 29 April 2008