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What are the impacts of ending tolls on Algarve property prices?

The end of tolls in Algarve is anticipated to have a positive impact on property prices, especially for buyers looking to invest in the region. With tolls on the A22 and other major highways being removed from January 1, local accessibility will greatly improve, making Algarve more attractive to potential homeowners. This development is likely to increase demand for properties, thus potentially raising prices as buyers flock to take advantage of better connectivity and reduced travel costs.

Investors should note that without the tolls, transportation costs for commuting to nearby cities and attractions will lower, encouraging more families and retirees to relocate. The enhanced appeal of Algarve means that properties here may see significant appreciation in value as the market responds to the increased desirability. Furthermore, with improved access, the region's rental potential may also rise, particularly with the influx of tourists and short-term renters.

As such, buyers can expect to find a variety of housing options ranging from luxurious villas to cosy apartments, all poised to offer excellent investment opportunities. The proximity to amenities like beautiful beaches, cultural landmarks, and local markets further enhances the living experience here. Notably, the removal of tolls serves as a catalyst for the region's growth, and it’s an ideal moment to enter the Algarve property market before prices escalate.

If you're considering a property investment in Algarve, now is the time to act. Explore your options today as properties are likely to sell fast in this burgeoning market. Contact us now to schedule a viewing!

Thursday, 02 January 2025 - News
What are the impacts of ending tolls on Algarve property prices?

In addition to Via do Infante, in the Algarve, tolls will end on the following motorways in the country: A4 – Transmontana and Túnel do Marão; A13 and A13-1 – Pinhal Interior; A23 – Beira Interior; A24 – Interior North; A25 – Beiras Litoral and Alta; and A28 – North Coast, in the sections between Esposende and Antas, and between Neiva and Darque.

The PS bill to end tolls in the former SCUT was approved last May, in the Assembly of the Republic, and the law that eliminates them was published on August 7, in the Diário da República.

Tolls on the Via do Infante (A22) began to be charged on December 8, 2011. They remained, despite protests from users and businesspeople, for over 13 years and six governments (five years of PSD/CDS governments and eight years of PT governments), although, in recent times, there have been price reductions.

To mark the end of tolls on the A22, the Via do Infante Users Commission (CUVI) has already asked for a "loud honk", from all motorists on the first day of the year 2025, between 10am and 12pm and from 4pm to 6pm, at the entrances and exits of cities in the Algarve, at the access points to the A22 and along the entire road.

However, according to CUVI, “the fight is not over yet”. This is because, argues the Commission, “what is now necessary is the dismantling, without delay, of all the gantries along the road, to prevent the temptation of any government to want to impose tolls again – which the Algarve will never accept”.

Although their payment ends directly for those who travel on the ex-SCUT highways, the tolls end up continuing to be paid, indirectly, by all Portuguese, through their taxes.

According to the Público newspaper, the end of tolls increased costs with Public-Private Partnerships (PPP) by 1,106 million euros.

Público cites data from the analysis that the Technical Project Monitoring Unit (UTAP), supervised by the Ministry of Finance, carried out of the 2025 Budget.

 

Source: https://www.theportugalnews.com/news/2024-12-31/the-end-of-algarve-tolls/94555

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