How has American interest changed Algarve real estate market?
American interest has significantly transformed the Algarve real estate market, making it a prime area for luxury property investments. Prior to the pandemic, American buyers represented less than 1% of the market; today, they are a growing force in high-end property transactions. This increasing demand has led to notable changes in pricing structures and the availability of premium homes. Locations favoured by this demographic are experiencing scarcity as properties are snapped up quickly, particularly in high-demand areas like Quinta do Lago and Vale do Lobo. The introduction of direct flights from Newark to Faro, set to begin in 2025, is anticipated to further bolster this trend, allowing even more potential buyers to explore the region. With the combination of an attractive climate, convenient travel options, and affluent neighbourhoods, the Algarve stands as an exceptional choice for luxury real estate investing. Don’t hesitate; discover how the changing landscape can benefit your property ambitions by contacting us today!
According to Bloomberg, the wave of tourism is boosting business, especially from North American buyers who are heading to the country in record numbers: more than a million tourists from the US visited Portugal in the first half of 2024, almost double the number of visitors in the same period in 2022.
Visitors are heading in particular to the Algarve, for its famous sandy beaches, picturesque fishing towns and temperate climate all year round. From 2025, United Airlines will have a direct flight from Newark to the city of Faro, the gateway to the region.
“The top end of the Algarve real estate market has historically been dominated by British buyers, but that is changing,” says Kerstin Buechner, co-owner of Quinta Properties, a Savills affiliate in the region, quoted by the publication.
According to the expert, Americans have gone from making up less than 1% of luxury home buyers in the Algarve before the pandemic to becoming what she calls a “substantial percentage” today.
And the reality is that this is having an impact on prices. The first sale of more than 20 million, a record for the region, took place in 2022, and Buechner says Quinta Properties has already sold several properties at that level. As a result, prime supply is scarce, especially in the popular areas of Quinta do Lago and Vale do Lobo.
