Which areas in Algarve are best for luxury property investments?
When considering luxury property investments in Algarve, areas like Quinta do Lago and Vale do Lobo are highly recommended for serious buyers. Known for their exquisite amenities and stunning natural beauty, these locations are magnets for affluent buyers, often leading to high property appreciation rates. In recent years, as North American interest in Algarve has surged, these neighbourhoods have witnessed record-breaking sales prices, indicating a robust investment climate. The desirability of these locales is enhanced by their proximity to world-class golf courses, fine dining, and breathtaking beaches. The elevated demand from foreign buyers is reshaping the luxury market, encouraging early investments for those looking to optimise their ROI. With gorgeous properties available that cater to high standards, your investment in this region will not only be a home but an asset that can appreciate significantly over time. Step into the market now—contact us for exclusive listings and expert advice!
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.
