- Prime Algarve property prices up by average of 30% in past year (Savills)Vale do Lobo reports “high and sustained” demand for land plots and key-ready prime homes
- Three-quarters of all international buyers in the Algarve are British (Savills)
The Algarve’s prime property market is booming. The latest figures from Savills, in its June 2024 Spotlight on Portugal, reveal that average prices for prime Algarve properties rose by more than 30% during the past year. 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 from 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.”
The Algarve offers homes at a wide range of price points. While Savills observes that it can be “a tough market for buyers with limited supply and high prices,” part of finding the right property at the right price is in knowing where to look. At the five-star Monte Santo Resort, close to Carvoeiro beach in the central Algarve and with five swimming pools, a spa and wellness centre, a children’s area, a multi-sports court and much more, spacious three-bedroom detached villas are priced from €560.000. At Salema Beach Village, prices for villas just 500m from the golden sands of Salema Beach start from €340.000.
The attractions of these resorts include the ability for buyers to purchase key-ready, furnished homes that they can start using straight away, whether as a secondary residence of for year-round occupation. The family-friendly nature of the resorts is also ideal for many of the younger families seeking a coastal lifestyle in the Algarve. The presence of international schools in the local area furthers the attraction. Monte Santo Resort is an 11-minute drive from the Nobel Algarve British International School, while Salema Beach Village is just 12 minutes from Vale Verde International School, which delivers bilingual education from primary age through to A-level.
For the Algarve as a whole, property prices stand at around €4,500 per square metre. Savills reports that in prime resorts such as Vale do Lobo, the average price per square metre is considerably more, topping €14,000 in places, as demand continues to outstrip supply. Located in the Algarve’s ‘Golden Triangle’ – an ultra-luxe area that also encompasses the town of Almancil – Vale do Lobo is home to some of the most sought-after land in Portugal. Owned and operated by Kronos Homes, it has recently released a select few land plots for sale. They include a stunning plot with approval to build a three-storey, five-bedroom villa beside the resort’s Royal Golf Course (on the market for €2.39 million) and a sizeable plot with sea views, noteworthy as being some of the last true beachfront land available in Portugal (priced at €6.36 million).
Savills’ Alexandra Gomes, Head of Research, Portugal, points out that, “Emerging from the pandemic, international interest in Portugal’s residential markets has been healthy, supported by solid market fundamentals.” Looking forward, she flags “a broad demand base and a continued shortage of prime supply” as the foundations for sustaining the markets in the year ahead.
This elevated demand certainly resonates at Vale do Lobo, where buyers have been keen to snap up the resort’s stylishly refurbished Golf Residences – which include apartments with Jacuzzis and impressive villas, as well as its plots of land. Alda Filipe, Real Estate Director at Kronos Homes, reports:
“Demand is both high and sustained, with international buyers keen to purchase second homes and main residences in prime positions here in the Algarve. This is supporting a very positive outlook for the region over the coming year, as well as for its longer-term future.”
For more information, email [email protected], call +34 637 480 079 or visit https://www.kronoshomes.com/en/.
