High demand for homes by foreigners keeps driving prices up across the region.
Foreign demand continues to drive up tourist investment in the Algarve as well as house prices. In the Western Algarve, the lack of affordable housing has left several families without an alternative, leading to increased requests for help from municipalities.
Aware that many await a response to the lack of housing problem in the Algarve, the Municipality of Lagos will build at least 250 new affordable homes. Some have already been completed, but the list of requests is extensive, and so is the bureaucracy.
According to a report on Portuguese news channel SIC Notícias, some 1,700 families are currently applying for the social housing programme, a number that has quadrupled since the last campaign. In a municipality that has always benefited from cooperatives, combating the housing shortage is more than ever a priority.
After Loulé and Albufeira, Lagos is the third most sought-after municipality in the Algarve by foreigners and the second where it is most expensive to buy a house. According to industry professionals, it will likely remain that way due to high demand.
In the first half of 2023, the Western Algarve absorbed 60% of international demand for property, with the English dominating the purchase and sales market. As for rentals, Brits shared the leadership with the Brazilians, followed by the Germans, Spaniards and North Americans.