The Place: The south-western tip of the western Algarve. AlmaVerde lies 10k from the port of Lagos, with the Costa Vicentina Natural Park on its doorstep.

The Price: From around €460,000 for a three-bedroom villa. All prices include 10-year spa club membership.

The Lowdown: AlmaVerde sets out to be the leading Spa Resort in the Iberian Peninsula.

Portugal has long been a favourite destination for Irish holidaymakers, at-tracted by the warm temperate climate, the ease of travel from Irish airports and the unbeatable combination of sun, sea, sand . . . and golf.

It's not just the tourists, however, who have bought into the Portuguese paradise. Over the past 10 years or more, investors have pumped many millions of euros into Portuguese property.

During the boom years, Portugal was one of the EU's fastest-developing economies, and property prices rose by roughly 15-20pc each year. The Algarve, in particular, enjoyed consistently strong popularity, providing potential for year-round rental income.

Among those to buy in the area were celebrities such as Steven Gerrard, Michael Owen, Cliff Richard and Ireland's own Ronan Keating and Denis O'Brien.

One of the most attractive developments to come on stream in recent times is the AlmaVerde Village, in the western Algarve.

Built on the site of a former farm and with elevated views over the surrounding countryside, the village comprises plots for 130 luxury villas, all with private swimming pools, plus 28 townhouses and several groups of apartments.

So far, says John Tranmer, MD of AlmaVerde, 82 units have been sold. Sales in 2009, he admits, "have so far been in the low single digits", even though the company reduced its prices at the end of 2008 by approximately 5pc.

"The desire to own a home in the sun remains as strong as ever, but there are far fewer serious buyers, and those who are out looking are being offered and expect substantial discounts to peak prices," says Tranmer.

The credit crunch, he says, has led to "a difficult environment for buyers and sellers alike".

Tranmer claims, however, that this makes 2009 an "excellent" time to buy. "There are many motivated sellers prepared to negotiate on price. Deals obtainable now are unlikely to be repeated once the market starts to turn again.

"Mortgages are still available on attractive terms, with interest rates at historic lows."

The resort is to be anchored by a Wellness Centre and Spa which, when complete, will house plunge pools, hydrotherapy pools, Turkish steam baths and mud baths.

There will be six synthetic grass floodlit tennis courts, a multi-purpose pitch, a basketball court, a pavilion with changing areas and a bar/café. Two restaurants, a juice bar, and a coffee shop are also planned for the site.

There are also over 20 golf courses within an hour's drive of the resort.

Contact: AlmaVerde at 01 282697857/9 Email enquire@almaverde.com

- Kellie O'Flynn