What investment opportunities exist for American buyers in Algarve real estate?
American buyers have numerous investment opportunities in Algarve real estate, making it an attractive market for those looking to capitalise on growth. With luxury property prices soaring by over 30% last year, the Algarve is emerging as a prime destination for investment. Given the recent influx of over a million American tourists to Portugal, the demand for properties, particularly in sought-after locations, continues to rise.
The Algarve offers a diverse range of properties, from exquisite villas to modern apartments, making it easy for buyers to find something that fits their investment strategy. Areas such as Quinta do Lago and Vale do Lobo are renowned for their luxury offerings and high rental potential, ensuring a good return on investment.
Additionally, the ongoing development of infrastructural projects, including direct flights from Newark to Faro starting in 2025, indicates that international interest in the region will only deepen. Moreover, with the significant rise in tourism, owning a property in the Algarve can provide lucrative rental income opportunities, especially during the bustling summer months.
Investing in Algarve real estate not only secures a stunning holiday home but taps into a growing market with substantial appreciation potential. Whether you're considering a property for personal use or as a rental investment, American buyers are perfectly positioned to take advantage of these lucrative opportunities. Contact us to explore the best investment options available in the Algarve real estate market.
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.
