The Algarve region in Portugal has become a popular destination for international buyers and investors looking for residential real estate. With its 300 days of sunshine, excellent flight connections, and a wide range of activities and amenities, the Algarve offers a desirable lifestyle for both holidaymakers and permanent residents.
According to Knight Frank’s “The Wealth Report 2023,” many investors are turning to property investments to diversify their portfolios and provide an inflation hedge. Residential real estate is considered the safest asset class by global ultra-high-net-worth individuals (UHNWIs), with 45 percent preferring it over other investment options.
The demand for real estate in the Algarve has been steadily increasing, with prices in the Central Algarve rising by 15 percent in the past year alone. The Portuguese National Institute of Statistics (INE) reports that for every house completed in the Algarve, seven houses were sold, indicating a high demand for quality properties.
The tourism industry in Portugal has also played a significant role in the attractiveness of the Algarve as an investment destination. In 2022, Portugal’s tourism sector generated over 5 billion euros in revenue, with the Algarve being the most popular area, welcoming over 4.8 million visitors.
Investors looking for income-producing properties can take advantage of the strong rental market in the Algarve. The tourism industry’s strength directly impacts the chances of a property delivering a steady rental income. Furthermore, the concept of branded residences, such as the Viceroy Residences offered at the Ombria Algarve resort, provides buyers with the assurance of a trustworthy brand managing their properties.
Sustainability is another key factor influencing buyer preferences. Ombria prides itself on being a sustainable lifestyle resort, offering properties and communal areas with numerous sustainable features. Bioclimatic architecture and the use of locally sourced materials contribute to energy conservation and environmental responsibility.
While the Portuguese government plans to end the Golden Visa program, which offers residency to foreign investors, this change is not expected to have a significant impact on property prices. The number of transactions seeking Golden Visas represents only a small fraction of the real estate market in Portugal.
Overall, investing in residential real estate in the Algarve region of Portugal offers investors the opportunity to diversify their portfolios, enjoy a desirable lifestyle, and benefit from the region’s strong rental market and sustainability initiatives.
Sources:
– Knight Frank’s “The Wealth Report 2023”
– Portuguese National Institute of Statistics (INE)