Foreign investors in the Algarve are mainly German, British, American and Swiss. The area that saw the biggest increase in house prices was Portimão, says Engel & Völkers, in the presentation of the results of its Market Report Portugal, the German brokerage network, carried out in partnership with ImoEconometrics, which analyzes real estate transactions brokered by the German multinational in the period 2022-2023, in the real estate markets of Braga and Guimarães, Porto, Oeste, Sintra, Cascais and Estoril, Lisbon and Oeiras, Comporta and Melides, Lagos, Portimão, Albufeira and Carvoeiro, Vilamoura, Quinta do Lago, and finally Faro and Tavira.
With regard to the transactions carried out by Engel & Völkers in the south of the country, it can be seen that foreign real estate investment predominates in the Lagos region, currently accounting for around 95% of the agency’s brokerage operations. In Quinta do Lago, foreign investment accounts for 90% of residential purchases and in Vilamoura, 50%. In Portimão, foreign investment generally accounts for around 80% of the transactions carried out by Engel & Völkers. In Albufeira-Carvoeiro, it represents 55% and in Faro and Tavira, the percentage is 90%.
As for the nationalities of investors in the Algarve region, the most popular are Germans, Brits, Americans and Swiss, with Dutch, French, Brazilians, Belgians and Irish also present.
The most sought-after types in the Algarve are three- to four-bedroom villas of between 200-300m2, usually with a swimming pool and large outdoor areas.Specifically in Albufeira, Carvoeiro and Vilamoura, demand is also for apartments with up to two bedrooms and around 110m2.With regard to the increase in house prices in 2022, the area that saw the biggest increase compared to the previous year was Portimão, with an increase of 33%.The Quinta do Lago area saw an increase of 35% compared to 2019.Vilamoura, Albufeira and Lagos, on the other hand, registered the least significant increases in 2022: Vilamoura registered a 10% increase, Albufeira a 14% increase and Lagos a 19% increase.In Faro and Tavira, the increase was 28% in 2022.As far as the rental market is concerned, the highest prices are in Quinta do Lago, where the price is 26 euros/m2, and in Vilamoura, where prices on the rental market are around 18 euros/m2. In the other areas of the Algarve, such as Tavira, Albufeira, Portimão and Lagos, prices vary between 8 euros/m2 and 8.7 euros/m2. The area with the lowest rental prices in the Algarve is Faro, where prices are around 7.1 euros/m2.
Source: Diário Imobiliário