Around 90% of buyers interested in property in the Algarve region of Portugal are there for second homes, attracted by the more than 300 days of sunshine a year and the tranquility of the region to enjoy holidays. The majority are foreigners, under 55 years old and golf fans, according to the latest study by Engel & Völkers. Less than 20% of investors in the Algarve region are Portuguese citizens. The remaining 80% of buyers are foreign citizens, with British nationals predominating, according to the luxury broker. Let's have a closer look at property investment in the Algarve in 2023.
Property investment in the Algarve
The Algarve region in Portugal has been a popular destination for foreign property investment for many years. Known for its stunning coastline, beautiful beaches, mild climate, and excellent quality of life, the Algarve offers attractive opportunities for individuals looking to invest in real estate.
The Algarve has shown consistent growth in property values over the years, making it an attractive investment option. The region attracts a significant number of tourists, ensuring a demand for rental properties and perhaps some of the best rental yields in Portugal.
Who is investing in the Algarve?
As well as British buyers, other nationalities are also "beginning to gain ground, as is the case of Germans, French, Swedes, Swiss and Dutch buyers", states the recent press release. "The number of North American investors is also increasing significantly," when it comes to property investment in the Algarve.
"The Algarve region attracts a lot of investment, especially foreign investment, due to its climate, proximity and the quality of the beaches on the Algarve coast. Foreign investment represents 80% of the total investment made in the region and the demand focuses mainly on properties that are intended for second homes. It is also notable the increase in demand in more secluded regions of the Algarve, such as Vila do Bispo, Boliqueime, Vila do Lobo, Quinta do Lago and Praia Verde. These villages are sought after above all for their pristine landscapes, security and tranquillity", says Margarita Oltra, Regional Manager of Engel & Völkers Portugal.
Other characteristics of those who invest in the Algarve
Age Group
Most buyers in the Algarve are under 55 years old and have an active professional life. They have children and, as a rule, do not want to live more than ten minutes by car from the nearest main town. At the same time, they are ideally looking for properties with sea views or located within walking distance of the beach, according to Engel & Völkers.
Hobbies
"The Algarve is internationally renowned for the quality of its golf courses, as a rule, located in more unspoilt areas. Given its reputation at this level and the numerous golf courses scattered throughout the region, a large part of the investors end up being enthusiasts of this sport."
Property prices in the Algarve: luxury villas and apartments
The report also added information about the cost of luxury property in Portugal, another popular option with foreign investors. In the Algarve's luxury real estate sector, prices per square metre, on average, vary between four thousand and eight thousand euros.
- A premium two-bedroom flat in Lagos costs between 400,000 and 550,000 euros.
- A three-bedroom villa here costs between one and a half and two million euros.
In Albufeira, exclusive villas cost around 2 million euros, while villas in Vilamoura are priced at around 3 million given their prestigious location.
More information about house prices in Portugal in 2023.
Real Estate investment opportunities in the Algarve, Portugal
For all of your real estate needs and the best properties for sale in the Algarve, look no further than idealista. All the signs show that it is worth investing in property in Portugal, and you're sure to find something that suits your needs in our selection of the best property for sale in the Algarve.
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