The demand for housing in Portugal continues to grow and there are areas that, for various reasons, are attracting more interest from investors - both domestic and foreign. This is the case of tourist destinations such as Lisbon, Comporta-Melides and the Algarve, which stand out as the most sought-after regions for investment, according to the Market Report released by consultancy Engel & Völkers (E&V).
Lisbon: demand and prices always on the rise
"The city of Lisbon is now a consolidated tourist destination. In addition to its attractions and lifestyle, it benefits from an internationally competitive infrastructure of services and facilities. Demand should remain stable and high in 2023, with a boost from tourism and international buyers," says Vanessa Moreira, Director of E&V Lisboa, quoted in a statement.
According to the study, demand for housing in the municipality of Lisbon will stabilise at 8,000 transactions in 2022. Furthermore, the "increase in inflation and interest rates during 2022 did not affect the dynamics of demand," and there was even a slight increase in transactions. On average, international buyers account for around 13%of all housing purchases in the municipality of Lisbon, with a greater presence in the parishes of Santo António, Arroios, Estrela, Misericórdia and Avenidas Novas.
In addition, house prices in the municipality of Lisbon continue to rise, with an increase of 14% in 2022, justified "by the interest of national and international buyers and the reduced supply of residential product", says E&V.
From celebrities to royalty: Comporta and Melides on the radar
According to E&V, the Comporta-Melides region "has been gaining notoriety because it has begun to attract celebrities, politicians and even royalty to its beaches". In recent years, new resorts and residential projects have sprung up with good infrastructure and support facilities, as well as golf courses, marinas, hiking and cycling trails, football and tennis courts, which "make the region very attractive for investment".
Demand for housing increased in the parishes of Comporta (Alcácer do Sal municipality) and Melides (Grândola municipality), which was reflected in the number of sales. In 2022, in the Alcácer do Sal and Grândola regions, there were 228 and 320 transactions, respectively. Resales continue to account for the vast majority of housing transactions. As for international buyers, they account for around 60%of all housing transactions, with the Germans, Swiss, British and Belgians leading the way in housing purchases in this market.
"Housing prices have also increased very significantly, by around 67% in 2022, reaching average offer values of 6,500 euros per square metre by the end of 2022," the consultancy reveals.
Algarve continues to win over investors
The Algarve is a tourist region where "traditionally there has always been property investment". In the Engel & Völkers Market Report, the highlight is Quinta do Lago, in the parish of Almancil. Situated in the so-called "golden triangle", together with Vale do Lobo, Vale Garrão and Almancil, Quinta do Lago benefits from its unique location in the Ria Formosa Natural Park, with its natural landscapes and beaches. It also has various infrastructures to support tourism, including golf courses, luxury hotels and restaurants, as well as tennis courts, an equestrian centre and shopping areas.
Demand has been gradually increasing, reaching 526 transactions in 2021 and registering some decrease in 2022, "which should be recovered in 2023", according to E&V. International buyers account for around 90% of all home purchases, with British, US, German and Dutch international buyers leading the way. House prices have risen by 35% since 2019, with the increase in inflation in 2022 stabilising values at 3,830 €/m2.
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