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Interest in Property in Madiera Bounces Back

Real estate analysts are predicting that Madiera is due to bounce back from the recent flooding to reassert itself as a popular tourist hotspot as well as a top location for holiday homes, House Sales Portugal reports ( www.housesalesportugal.com). Interest in Portuguese properties on this archipelago understandably waned while the extent of the flood damage was assessed, as well as the potential danger of further flooding, but the latest reports indicate that both tourists and investors are already returning to Madiera.

Earlier this year, the Portuguese archipelago of Madiera was hit by deadly flash floods which left scores of people dead and the island ravaged. Until this natural tragedy struck, Madiera had been one of Portugal's top tourist destinations and a favourite location for those looking to buy a house in Portugal as a holiday home. The reliable tourism and resulting rental opportunities of the island and the mainland also attracted many real estate investors looking to profit from property in Portugal. Unsurprisingly, the terrible floods put all of this on hold: tourists stayed away from the island and potential property purchasers waited to see what the medium- to long-term effects of this natural disaster would mean for Madiera.

The good news for Madiera and its residents is that the aid received from the mainland helped to get the independent island back on its feet in a surprisingly short time. Also, significant further investment has been earmarked to help attract tourism once again. Madiera is set to have two new golf courses built in 2011 and there is talk of a possible new super-yacht terminal. Prime Location's property writer Alexander Garrett has noted that interest in real estate on the island has not been damaged long-term because of the floods: "With huge investment having been ploughed into roads and an extension to the airport and other infrastructure, moves are now afoot to broaden Madeira's appeal. With Madeira's outstanding warm climate throughout the year, the floods are unlikely to prove more than a temporary setback."

This is also good news for property sales in Portugal and its archipelago, as it seems that Madiera is set to welcome back tourists and those wanting to buy Portuguese property.

For more information on property on the island and the Portuguese mainland, visit www.housesalesportugal.com.