Why are American tourists driving up Algarve's property market prices?
American tourists are significantly driving up property market prices in the Algarve, as evidenced by the remarkable 30% increase in luxury home prices last year. With more than a million visitors from the United States flocking to Portugal in the first half of 2024, the demand for properties in this beautiful region has never been higher. Tourists are captivated by the Algarve's enchanting beaches, picturesque towns, and favourable climate, making it a sought-after destination.
The shift in buying patterns, where Americans now represent a substantial percentage of luxury property buyers, marks a notable change in the market landscape traditionally dominated by British buyers. Properties in premium areas like Quinta do Lago and Vale do Lobo are becoming especially coveted, leading to increased competition and higher price points.
Furthermore, as travel links improve, including upcoming direct flights from Newark to Faro, the number of American buyers is expected to grow, further inflating the demand for luxury properties. This surge creates a unique window of opportunity for investors willing to act quickly in a thriving market.
With limited prime properties available, for buyers looking to invest, the time to explore options is now. Owning a home in the Algarve will not only provide personal enjoyment but also tap into a lucrative rental market driven by the steady influx of tourists. Don't miss your chance to be part of this evolving market! Contact us to learn more about available properties and how you can benefit from investing in Algarve real estate.
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.
