The Algarve has become more popular than ever: not only among visitors who are captivated by its beaches and warm, mild climate throughout the year but also among investors. The region's property market continues to feel the effects of this dynamic and is growing visibly. Savills reports that luxury property prices in this part of the country increased by more than 30% last year.
According to Bloomberg, the tourism surge is boosting business, particularly from American buyers who are arriving in record numbers: over one million tourists from the US visited Portugal in the first half of 2024, nearly double the number of visitors during the same period in 2022.
Visitors are particularly drawn to the Algarve for its famous sandy beaches, picturesque fishing towns, and temperate climate year-round. From 2025, United Airlines will have a direct flight from Newark to Faro, the gateway to the region.
“The top end of the Algarve property market has historically been dominated by British buyers, but that is changing,” says Kerstin Buechner, co-owner of Quinta Properties, a Savills affiliate in the region, as quoted in a recent press release.
According to the expert, Americans have gone from accounting for less than 1% of luxury property buyers in the Algarve before the pandemic to what she describes as a “substantial percentage” today.
And the reality is that this is impacting prices. The first sale over 20 million, a record for the region, occurred in 2022, and Buechner says that Quinta Properties has already sold several properties at that level. As a result, prime supply is scarce, particularly in the popular areas of Quinta do Lago and Vale do Lobo.