In just 10 years, the price of luxury properties across the Algarve has risen by 61%. Figures from the National Institute of Statistics (INE) also show that demand for these types of properties has risen consistently between 2002 and 2022, mainly from foreign buyers who value the region's accessibility.
According to the latest report from consultancy firm Knight Frank, in just 12 months, prices for luxury properties in the Algarve's Golden Triangle (Almancil, Quinta do Lago and Vilamoura) increased by 15%.
The firm analysed INE data and found that, in 2022, transactions in the luxury segment rose by 21% up to the second quarter of the year. This is due to the growing demand from foreign high-end buyers, mostly second-home buyers but also around 37% of permanent residents.
But although prices haven't stopped rising in the past decade, the number of properties available on the market continues to decline and new construction is struggling to keep up with demand, with lack of labour and high build costs.
Following an unprecedented year in 2021 and an equally dynamic performance in 2022, experts do believe that the luxury real estate market is reaching an important maturity point, with prices expected to stabilise and return to 2019 levels.
While we don't have a crystal ball, we at Algarve Home Sales have decades of local knowledge of the Portuguese property market. Whether you're hoping to find your perfect property or sell your home without any of the hassles, get in touch with us!
Image courtesy of Quinta do Lago