Whether it's the sunny climate, the sandy beaches, the award-winning golf courses, the traditional food or the welcoming people, the Algarve has always been an attractive destination for international visitors. Yet demand is still increasing, and so is investment.
In this year alone, property searches by foreign investors rose 21% in January and February compared to the last two months of 2021. According to data released last week by the property site Imovirtual, that translates into 450,000 property searches.
It's a trend that began back in 2019. Between then and 2021, around 25,000 homes were sold in Portugal to international investors, representing an investment of €7.3 billion – €3.8 billion from EU buyers and €3.5 billion from buyers outside the EU.
Representing just over 10% of homebuyers in Portugal, data from the National Statistics Institute (INE) shows that foreign investors spend an average of €375,000 on a property and have a special preference for the Algarve.
Perhaps unsurprisingly, a total of 40.3% of homes purchased between 2019 and 2021 were in the Algarve, representing 45.8% of the total investment value. While buyers come from all over, the real estate consultants Engel & Völkers report an increase in the German market.
On average, they represent 15% of the total real estate buyers in the Algarve (still with a “growing interest”), with a preference “mainly for luxury properties, namely detached houses and with ample indoor and outdoor spaces, overlooking the sea or surrounding nature and often close to golf courses”.
Unsure about the buying process in Portugal? We've laid it all out here. If you still have questions, get in touch with the Algarve Home Sales team directly and we'll help you with local knowledge and expert advice on purchasing a property in the sun.