Independent magazine Confidencial Imobiliário has reported that “in line with developments observed in the metropolitan areas of Lisbon and Porto”, home rentals in the Algarve have dropped by 31% since 2013.
The reason – an “ever-widening gap between the dynamics of supply and demand” – stems from the fact that “Portuguese people are thinking of returning to the market of buying and selling” which has become “much more advantageous” than rentals.
The trouble with this is that the private rentals market is now in danger of disappearing altogether.
Confidencial Imobiliária says “it is fundamental that rents don’t drop” as this may lead to the few landlords remaining pulling out of the sector.
For now, three quarters of the (registered) Algarve home rentals are found in the boroughs of Albufeira, Faro, Loulé and Portimão.