Spotlight: 

Prime Algarve Residential Market

Prime Algarve Residential Market
Prime Algarve Residential Market

29 March 2016, by Paul Tostevin

The Prime Algarve attracts lifestyle buyers seeking quality properties in a safe and secure environment

The Prime Algarve is part of a network of internationally invested destinations that are behaving quite unlike the nations in which they are located. While Portugal’s national housing market is seeing tentative improvement, the Prime Algarve has outperformed in recent years. This is in line with the recovery in the countries from which most of the Algarve source buyers are derived, most notably the UK.

 

The renewed rise of the Prime Algarve comes as many wealthy individuals find themselves fully invested in ‘first-tier city’ property. In the years following the global financial crisis, cross-border wealth and other investment focused on the prime core of established world cities, seeking safe havens in times of economic uncertainty. In the most heavily invested cities like Hong Kong, London and Singapore, prime prices have doubled in a decade. The prime markets of these cities are fully taxed and, with prices at a high plateau, buyers are looking at second-tier cities and leisure retreats for capital growth prospects.

The privately owned and managed Algarve resorts of Quinta do Lago and Vale do Lobo appeal to additional home buyers, as they offer high-quality properties and on-site amenities in a safe and secure environment. Buyers are attracted to the region’s lifestyle and an investment that can both be enjoyed or rented out for part of the year.

Tourism is the underlying fundamental for a second home destination. The Algarve is one of Europe’s most popular tourist regions. Globally, international tourist arrivals grew by 4.4% in 2015 to reach a total of 1.2 billion. Europe led the world with growth of 5%, while Portugal saw growth of 8%. An improving tourist sector bodes well for the Prime Algarve, bringing more prospective buyers, and renters, to the region.

Characterised by low levels of supply and a product tailored to the luxury second home market, the Prime Algarve is positioned to benefit from deepening demand from established source markets in the years to come.

 

 
The Algarve is one of Europe's most popular tourist destinations

▲ The Algarve is one of Europe's most popular tourist destinations

Articles from Spotlight: Prime Algarve Residential Market – 2016

The Algarve At A Glance

29 March 2016

The Portuguese economy is seeing some recovery, recording growth of 1.5% in 2015 and forecast to grow by 1.6% in 2016

Prices for the very best properties in the Prime Algarve in 2015 exceeded 2007 levels

Outlook

29 March 2016

New development, rebuilding and resort investment is modernising the property on offer

 
 

Subscribe to Savills research

 

Would you like to be notified via email about new property research?

Key contacts

Paul Tostevin

Paul Tostevin

Associate Director
World Research

Savills Margaret Street

+44 (0) 20 7016 3883

 

Hugo Thistlethwayte

Hugo Thistlethwayte

Head of
International Residential (Operations)

Savills Margaret Street

+44 (0) 20 7409 8876