That is according to Santander Totta, a leading provider of mortgages for people buying real estate in Portugal.

It says that, after the economic crisis saw a sharp fall in the cost of homes, many people are looking to take advantage of the cheaper prices.

Speaking to aplaceinthesun.com, Simon Perks, the bank's general manager, said: "In the last three to four months we have seen more interest from those looking to buy at the top end of the market as the Algarve continues to attract mainly lifestyle buyers."

Nigel Salmon of Portuguese property agency Girasol Homes, supported his comments, saying that Brits in particular are looking to buy retirement or second homes in the area.

"Most people buy for the right reasons and the opportunity of lots of properties to choose from and buying for genuine retirement or a quality second home is the main catalyst. There may be more needy sellers and builders which may offer some additional opportunity, but on the whole, the [Algarve property] market looks reasonable for 2011," he said.

A recent survey by the National Statistics Institute found that property prices in the Algarve climbed by an average of 0.8 per cent during October.

www.myalgarvecars.com