Wise planning choices have given Algarve, Portugal the edge over Spain in terms of property investment demand.

While the rest of the European real estate market dwindled last year, the Portuguese government retained tight control over construction in the country’s Southern coastal area. Villas had to be built under strict guidelines adhering to the personality and aesthetic of its surrounding areas. As a result, property in Algarve rose 2 percent last year and went for a modest 1,429 per square metre.

This year, Algarve property is expected to continue to rise steadily, enticing the traditional Spanish villa investor to turn to the country’s neighbor instead. With its gorgeous beaches, golf courses and sunny climate, overseas investors see the long-term potential for returns on purchasing Algarve property.

Investors from countries, like the UK, which have already begun .......