In the five years since 2019, meanwhile, average capital values have risen by 92%. Sales, meanwhile, have risen by an annual growth of 25% year-to-date in Q1 2024, as the post-lockdown boom in second-home destinations continues.

Savills also sheds light on where buyers are coming from and what they are seeking. Three-quarters of international buyers in the Algarve are British, while there is also increased American interest in the region. Interest is also increasing among young families, who seek to relocate to the Algarve due to its healthy, active lifestyle, favourable cost of living, high-quality homes, and expanding international education offering.

“Elevated demand for coastal living, in terms of both second homes and primary residences, is certainly something we are seeing across our Algarve portfolio,” comments Alda Filipe, Real Estate Director at Kronos Homes, which owns and operates resorts in the Algarve and other regions of Portugal. “Demand from UK and Irish buyers remains strong, while the number of buyers from the US is increasing. At our Salema Beach Village development in the Western Algarve, for example, 40% of our buyers hail from the US.”