The property market crash on the Continent has been far from a well-kept secret, with villas in Mediterranean destinations such as Spain seeing their prices plummet as the eurozone struggles to cope with the strain of the financial crisis.

While this hasn't been great news for other European populations, it has meant that Brits have been able to get more for their money as the pound strengthens against the euro.

So as the lure of a holiday home in a warmer climate becomes increasingly tempting, it looks like Portugal could be the ideal place to invest for anyone thinking of taking the plunge and picking up a bargain on the Continent.

That's because the latest housing market survey from the Royal Institution of Chartered Surveyors (RICS) and Confidencial Immobiliario has revealed that demand for Portuguese properties is continuing to fall, with the weakness in the market resulting in a drop in prices.

As Property Wire reports, sales transactions have been declining in Portugal, with 72 per cent more respondents reporting price falls rather than increases.

And with the lettings sector also witnessing a drop in demand, it seems that there are plenty of opportunities to find a cut price property on Portuguese soil.

"In Portugal, house prices continue to fall due to very weak demand. Demand weakness, in turn, stems from a deteriorating labour market," said RICS senior economist Josh Miller.

If you've been looking for a chance to buy a second home as a means to escape the stresses of working life throughout the year then it looks like Portugal could be a sensible location to start searching.

But despite the bargains that are on offer, it's vital that anyone who does buy an overseas property remembers the importance of holiday home insurance to protecting their new assets in the event of damage or theft.