The luxury real estate market in Portugal
The market recovered rapidly in 2021, after the pandemic period, where there was a high number of transactions but also a continuous increase in prices.
In the first trimester of 2022 it was registered an increase of 13% in the price of houses, the highest in the last 12 years.
The reason for this increase is the popularity of the country. Each time more foreigners choose Portugal as their vacation destination or to live permanently. This increase in the foreign population is already a phenomenon that has been noted since 2016, but in 2022 it doubled. These factors are reflected in the increase in house demand and, in turn, in the steady rise in prices.
Algarve, a favorable area for investment
The Algarve is an area that is clearly a target in the buyers map. In addition, geography, climate, safety, and hospitality are among the most business-friendly criteria.
Also, when it comes to luxury real estate, the quality of construction is well recognized. There are homes and designs for all tastes with meticulously accomplished finishes.
The average price per m2 is around €3,900 in 2022, which makes the Algarve very attractive compared to areas in other countries.
The origin of the investors is mostly foreign. The Golden Visa and NRH programs brought new buyers to Portugal. In the Exclusive Algarve Villas “we saw an increase in the markets of German and Dutch language in the last 12 months, as well as an accented increase in buyers from the U.S.A. and Canada.”
Of course, there are some investors that remain reticent and prefer to wait and see what happens to the market. However, as evidenced by the Exclusive Algarve Villas, there are many international buyers who show interest in Portugal and, in particular, in the Algarve real estate market. The pros outweigh the cons, and this is probably a good time for those thinking about selling their luxury home in the Algarve.
“We are always searching for new luxury properties to sell. The Algarve is one of the best areas in the country and the properties facing the sea, between 1 to 10 million euros sell very well.”
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