The southernmost region of Portugal and the southwestern tip of Europe.

What's so special about it?

For the over five million tourists per year the attraction of the area is the climate, the beaches . . . Praia da Marinha in Lagoa was classified as one of the 100 most beautiful and well preserved beaches of the world . . .the low density and the short daily flights.

Best kept secrets:

A recent survey by Channel 4's A Place in the Sun programme, found that Portugal as a whole was the third best location, after Poland and Romania, to make money in property.

Tommy O'Brien from Parador Properties Ireland also confirms that the Algarve region is very popular with the Irish. He reports that the Algarve has an above average conversion rate of 45%, meaning almost half of all people who go to view the area buy.

Nick Sadler from Knight Frank says from 1995 to 2005 overseas ownership in the Algarve by Irish and British buyers increased by 90%.

Who lives here?

The area has always been a haven and alternative to Spain for the rich elite. Today many well known names own properties there including entrepreneur Denis O'Brien, footballers Frank Stapleton and Steve Bruce, singer Ronan Keating and it is also rumoured locally that Bill Gates has invested in the region.

What's the property market like?

Most agents selling the Algarve quote capital appreciation rates of an average of 15%. Channel 4's A Place in the Sun calculations reported that buyers could expect 360% returns after 10 years.

Nick Sadler from Knight Frank reports that 2005 was not as great as expected but that 2006 saw a recovery.

Portuguese developers are very sophisticated and you can be assured that planning and licences are in place, due to strict government and regional procedures, says O'Brien.

According to Niamh O'Mallie from Joe Connolly Properties a major advantage of the Algarve is the fact that the standard of construction is so high, even more so than in Ireland.

Planners, taking example from issues in Spain are also much stricter and are careful to protect the coast by prohibiting developments closer than 500m from the beach and buildings no more than four storeys. Such regulations have created a supply and demand issue as not all projects are given permission so there is a shortage of prime properties in the main areas.

How do you go about buying property?

If researching information on the area The Portugal News and The Resident are the main English language newspaper, while Expresso and Publico are the main Portuguese papers.

For sourcing agents the Associacao dos Profissionais e Empresas de Mediacao Imobiliaria de Portugal (APEMIP) is the local body, however its website is in Portuguese.

When selecting agents in Ireland good starting points are the Association of International Property Professionals or the website Overseaslist. com.

As an EU country there are no restrictions on buying in the Algarve region for foreigners.

Once you have found a property you need to hire a lawyer who speaks English and can translate the contract for you.

The lawyer will also need to inspect the property's title deeds and you should also do checks at the land registry and the local revenue.

Buyers have to pay IMT or Municipal Transfer Tax, which is on a sliding scale between 2% to 8%.

Where are the best places to buy?

According to O'Mallie the most sought after area is 'The Golden Triangle' in the Southern Algarve, consisting of Vale do Lobo, Quinta do Lago and Vilamoura, which have the best capital appreciation levels and in that order.

"These are the areas where people want to live as there are a lot of wealthy buyers that have bought there and it is a very scenic area."

The Eastern Algarve is where the locals are buying, however for foreigners Lorraine Sweeney believes the west is where the higher levels of capital appreciation are to be found, and it is more of an investor's location as it is more family orientated, has a lot of restrictions, and so is very underdeveloped. Faro is still the magnet for city dwellers looking for a more urbanised Algarve lifestyle.

What's the rental market like?

O'Brien reports that the average rental season is about 15-20 weeks. O'Mallie believes that the Algarve offers a truly four season option because of the golf factor as families and holiday makers are the market from April to October and then from October to April is the peak golfing season.

The Global Property Guide reports that rental yields are higher in the Algarve than in Portugal nationally and yields of 12% can be expected and a 35sq m apartment can generate a monthly rent of 1,500.

What's the resell market like?

The difference between Spain and Portugal, says O'Brien, is that in Spain you will see lots of 'For Sale' signs on properties, however in the Algarve this is not the case as properties rarely come up for resale.

However Sadler reports that prices for resale properties fell in 2005 due to an increase in new build properties. Sales did go up in 2006 and there has been strong interest in properties over 500,000, while viewings of properties over 1m improved by 70%.

What type of property is available?

The most popular properties are two-bed apartments or townhouses located close to amenities and transport links. These make for the best rental yields and resale potential.

Average property prices?

There is a range of properties available from studio apartments to large villas.

With Parador Properties Ireland the entry level is 140,000 for an apartment, while they say 180,000 is the average.

Due to supply and demand issues and strict planning and building regulations the Algarve is perceived as being quite expensive and the prices for large properties can be up to 2,500- 3,500 per sq m, according to data from the Global Property Guide.

What are the tax breaks with Ireland?

Both countries signed a double taxation agreement in 1995.

Tax on rental income is 15%, less maintenance, costs and repairs. Municipal Property Tax range from 0.4 to 0.8% and capital gains is taxed at 25% unless it is reinvested, in which up to 50% of the tax can be claimed back.

FAST FACTS

Getting there: Aer Lingus flies from Cork and Dublin and Ryanair flies from Dublin.
Area: 5,412sq m
Population: 410,000
Currency: Euro
Weather: On average the temperature fluctuates between 15degreesC and 31degreesC, but rarely falls below 0degreesC.
Transport: Faro is the main airport, however the Vio do Infante motorway has considerately reduced travel time to the Western Algarve. There are bus and train connections between Lagos, Olhao, Faro and Lisbon.
Going out: Faro is the main city with the Old City's great 18th Century architecture. Vilamoura is a popular tourist spot. Cape St Vincent is the southwestern tip of Europe and makes for great surfing and sunbathing. And when in Portugal you have to try the Port!
Eating Out: The area is most famous for its Piri Piri Chicken. There are some great Thai and seafood restaurants in Faro along the coast, where you can try portmao, grilled sardine, served on home-made bread.
Shopping: The Algarve is famous for its ceramics with lots of suppliers in Lagos. There are also big malls for dedicated shoppers

USEFUL CONTACTS

>> Irish Embassy in Lisbon: 00351-21392 9440;Lisbon@dfa. ie
>> Portuguese Embassy in Dublin:01-28 94416; embport@dublin. dgaclp/pt
>> The Portugal News: www. the-news. net
>> The Resident: www. portugalresident. com
>> Publico: www. publico. clix. pt
>> Associacao dos Professionais e Empresas de Mediacao Imobiliaria de Portugal (APEMIP): www. apemip. pt
>> Association of International Property Professionals: www. aipp. org. uk
>> Overseas List: www. overseaslist. com
>> Algarve Tourist Board: www. visitalgarve. pt
>> Algarve news and information portal: www. algarvemais. com
>> Portuguese Government: www. portugal. gov. pt