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.
Let´s not forget inflation. Debased currencies force people to look for safe havens. And lovely Portugal is a very safe haven.
By Marco from Lisbon on 19 Sep 2024, 09:51
Hmmm....would love to know what the "substantial percentage" is in real numbers. With only 14k Americans as card carrying residents of PT, I am a bit skeptical of vague statements such as this one.
By Debbi from Lisbon on 19 Sep 2024, 19:17
And that is why it would be stupid to buy a property in the Algarve right now because prices are over inflated and they’re due for a correction, and those buying at the top of the market are going to feel at the most. Either focus on another part of Portugal or step back from the buying process for a year or so.
By Patrick Oh! from Lisbon on 19 Sep 2024, 21:21
This feels like a hit piece against Americans. There just isn’t enough Americans here to influence the prices of anything including homes. This is very low quality reporting.
By Kristen McCormick from Algarve on 21 Sep 2024, 09:42
It’s not just mansions, villas or houses!
There are also plots of land, between 100 and 200 or 300 hectares, where you can build mansions (or, simply, houses), guaranteeing complete discretion and, at the same time, enjoying all the splendor of the Algarve!
By Antonio Almeida from Algarve on 03 Nov 2024, 23:04