Cheap properties and high interest savings accounts are attracting seasoned investors and amateur overseas landlords to the Portuguese property market.

Bookings to view homes through estate agency Infinito Real were up three-fold on last year in November and December appointments are up 10 times more than that.

Managing director Stephen Anderson said: “What's unusual this year is that booking levels are such that we are busy right through December, even over Christmas, which is traditionally quiet within any property market.

“In the last month I have taken on four new members of staff to ensure we are able to continue providing a personal service for those coming over to view properties.”

Despite reports suggesting a 45 percent rise in the number of tourists visiting Portugal over the summer versus the previous year, it was not anticipated that interest in property would rise significantly due to economic circumstances.

Anderson added: “In contrast to previous years, bookings are predominantly investor orientated rather than the usual holiday home enquiries.

“It would seem that, aside from the typical investor, other visiting tourists are starting to realise the rental potential over here and considering fly to let over other forms of investment.”

According to Infinito Real, it is the cheaper properties sitting at around the £100,000-£150,000 mark which are attracting most interest rather than the £200,000 plus properties of previous years.

“There has also been a few exceptionally cheap repossessions from the banks offering 90 percent mortgages with a one percent spread which have been snapped up within hours, and buyers don’t appear overly fussy about the location provided the price is right and the rental income is achievable,” Anderson explained.

Some investors have also been attracted by the availability of high interest saving accounts only available through the banks if taking out a mortgage.

He added: “Cash investors are seeing fantastic value in taking out a small mortgage on their purchase, which is easily accessible due to the low loan to value required, and then taking advantage of opening a savings account offering five percent interest per year gross which is guaranteed up to £50,000 per person, something which is rarely available anywhere else.

“The success of these bookings over the next month will be influential for the forthcoming year and should start to give us a good indication of what we can expect from the market in 2012.”

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