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Locations - The Algarve

Moving upmarket

Portugal’s tourism and real estate markets were once entirely focused on the Algarve. It is Portugal’s most popular area and receives a large proportion of the country’s tourists. The Algarve is the warmest part of Portugal and its beaches are teeming with visitors during the summer months.

Popular market

Around 50,000 properties already have British owners in the Algarve, and the area is also popular with the Portuguese, who tend to favour the east for their holidays. However, the market is considered by many to be saturated, with towns such as Albufeira suffering from the effects of mass tourism. Redemption was found by going upmarket.

Vilamoura resort

Privately owned Vilamoura is an upmarket resort and the ‘nerve centre’ of Algarve golf. Buy-to-lets are popular here as the area’s prospects are good. Its 6,000 permanent residents already have a 1,000-berth marina and six championship golf courses, but the ‘Vilamoura XXI Cidade Lacustre’ scheme will revitalise the area and improve facilities, adding additional real estate, an equestrian village, leisure facilities, shopping and a sports centre with cross-country running tracks and two football pitches.

Best investments

The properties that are considered an excellent investment tend to be those on a golf course or marina, within family-friendly resorts, with recreational activities and close to the beach, facilities, shopping, or a city are generally considered an excellent investment. Lagos, in the west Algarve, saw 23% capital appreciation from 2003 to 2006. Portimão and Praia de Rocha are nearby towns that have seen an increase of 25% per annum.

Cheaper option

East of Faro, properties in picturesque towns such as Tavira are receiving marked interest, as prices are generally 30% cheaper than the Faro to Lagos strip. From the Mediterranean Algarve, along the previously unexplored Atlantic coastline is the Costa Vincentina. Only a short drive from Lisbon, this area is becoming increasingly popular with the Irish market and since the local tourist boards have boosted its public profile, house prices have increased between 20 and 30%.

Buoyant sales market

Towns in the area of Sagres, on the south-westerly tip, up to Aljezur, have a buoyant sales market and the area is singled out as an excellent place to relocate to on a long-term basis, which means long-term rental potential as well.

Related items

Documents and Reports

	Portugal property investment report (420Kb)
	Portugal country guide (1Mb)
	Portugal property buying guide (1Mb)
Documents and Reports

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