What are the potential returns on investment in Alcoutim, Algarve?
Investing in Alcoutim, Algarve, offers promising potential returns that savvy buyers are starting to notice. This unique region, with its breathtaking views over the Rio Guadiana, has become an intriguing option for those looking to invest in property, especially with the rise in tourism interest. The local government's initiatives, including significant European Union funding, have positioned Alcoutim as a locale with both growth potential and affordable investment opportunities. As new tourism infrastructure emerges, property values in the area are anticipated to rise, reflecting the increased demand for unique and authentic travel experiences. With a lower number of properties on the market, investors can expect less competition and more negotiating power when making a purchase. The income potential from short-term rentals is also considerable; as more tourists venture inland, the need for high-quality accommodations will grow. Many property owners are retaining opportunities for rentals, ensuring steady income while enjoying the natural beauty of Alcoutim. Overall, the current state of the market combined with forthcoming developments indicates a positive trend for investors willing to act decisively. If you're interested in exploring investment prospects in this picturesque part of the Algarve, don't hesitate to reach out for more information!
Far from the coastline, facing the great Rio Guadiana, Alcoutim has the form of a natural amphitheatre overlooking the river, with its brilliant white houses and rolling green hills as a backdrop. This eastern end of the Algarve, bordering Spain, really hasn't seen much in the way of modern development yet and is a hidden gem, about half an hour's drive from the coast.
With fewer properties on the market, there was and still is less demand than for the coast. However, this is changing because of interest in the Guadiana River and future projects and economic opportunities thanks to local and national decision-making, as well as EU funding.
This includes the Recovery and Resilience Plan (PRR) financing a 9 million Euro project for a new International Bridge between Sanlúcar de Guadiana and Alcoutim. Additions to the existing collaboration protocol were signed in February 2022 by the Municipality of Alcoutim and CCDR Algarve who will carry out this public investment.
Plots and properties are starting to creep onto the market and alternative/rural tourism has become an attractive investment possibility in the last few years. Resales are less frequent as some owners, whilst not resident; retain property in the area because of: family ties, vacations, rentals or retirement. However, there are other opportunities now available, in and around this stunning area with Togofor-Homes Real Estate Agency.
