Overview of the Alcedo Villas in the Ombria Resort

Brits represent more than 50% of resort housing demand in Albufeira-Loulé area

According to the most recent “Portuguese Resorts Market Report”, the number of units purchased in resorts increased by 20% in the 1st half of 2022 compared to the 2nd half of 2021.

Having diversified their choice of investment destinations in 2021, the British are once again focusing on the Algarve’s main area – the Albufeira-Loulé axis – to purchase resort housing. According to a report by SIR-Resorts, Brits “made 56% of international acquisitions in this area in the first half of 2022”, putting their market share back above 50%.

This had already been the pattern between 2018 and 2020. Still, in 2021 Brits lost expression in this area (to around 40%), showing signs of opening up to markets outside the Algarve. Last year, they even led international purchases in resorts on the Atlantic Coast (between the Oeste region and the Alentejo coast), with a share of around 20% in this destination.

According to the most recent “Portuguese Resorts Market Report”, produced by Confidencial Imobiliário in partnership with the Portuguese Association of Residential Tourism and Resorts (APR) and supported by Turismo de Portugal, the number of units purchased in resorts increased by 20% in the 1st half of 2022 compared to the 2nd half of 2021.

“The greater diversification of nationalities in various destinations and the reinforcement of the British in their traditional market are some of the reasons for the 20% growth in units transacted, showing one of the highest levels of activity since 2017. Albufeira-Loulé and the Atlantic Coast are responsible for about a third of sales each. On the other hand, the Barlavento and Sotavento are around 20% each.”

Regarding average price, Albufeira-Loulé recorded average sales prices of €4,625/m2. The Barlavento and the Atlantic Coast areas registered sales at levels identical to their usual pattern, around €3,000/m2 and €3,800/m2, respectively.

Quoted in Visão magazine, Pedro Fontainhas, executive director of APR, said, “The results of this report confirm that the demand for housing in Portuguese resorts has been increasing in many international markets. This demand is being met by a growing supply resulting from various investments in residential tourism projects in Portugal”. Fontainhas also pointed out that “resorts are increasingly asserting themselves as favoured locations to purchase a property, whether to invest or to live permanently”.

Prices stabilize

Having registered a substantial increase at the end of 2021 (+13%), resort housing prices stabilized in the 1st half of this year, showing a half-yearly variation of 1.5%, according to the Resort Price Index.

“Nevertheless, in year-on-year terms, the appreciation remains robust (+14.6%)”, the report highlights, underlining “the six-monthly consecutive price growth in the last two years”.

An appreciation that has consolidated the status of this type of property among customers and potential buyers. “Resorts are a product in which Portugal is very strong, combining landscape and urban quality with a high-quality residential offer integrated with value-added services. It is a very mature market, which until recently defined the value ceilings in the national market”, said, in turn, Ricardo Guimarães, Director of Confidencial Imobiliário.

The offer in resorts followed the trend of sales prices, maintaining stable values ​​in the 1st half of this year, according to SIR-Resorts. In this period, the country’s resort housing offer was at “an average value of €4,301/m2, little different from the €4,382/m2 of the previous semester and remaining at the same level as in recent years, namely between €4,000/m2 and 4,500 €/m2. Behaviour in the highest range of the market, the 95th percentile of the offer values, is identical, with the resorts in this fringe reaching €7,972/m2 in the semester under analysis.”