The Portuguese Resorts Market Report is the outcome of the new Resorts Information System (SIR-Resorts) launched by Portuguese Chamber members Confidencial Imobiliário and APR – Portuguese Resorts Association, with support from the governmental agency, Turismo de Portugal.
This system gathers information from the leading resorts in the regions of the Algarve and Portugal’s Atlantic Coast, as well as from the most relevant agents within those markets.
After a substantial rise at the end of 2021 (+13%), the prices of properties in resorts stabilized in the 1st half of 2022, presenting a six-monthly average increase of 1.5%, according to the Index of Resort Prices.
This follows a semi-annual increase of 13% in the second half of 2021, which may have been distorted by the end of the mobility restrictions associated with the pandemic.
The Resorts Market Survey confirms the price index results in the first half of 2022. When questioned, operators say that prices are consolidating, rising more slowly than previously.
Operators are optimistic so far in 2022, but less so than in the previous semester, when expectations were almost on a par with the price highs of 2017. Thus, the Expectations Index (which combines expectations of price developments and sales) stood at 48 points in the first half of 2022, down from 66 points in the previous semester. However, expectations regarding prices remain high, with 63% of respondents believing that resortsproperty prices will continue to appreciate.
HOUSES IN RESORTS STABILISE VALUES AROUND 4,300 EUROS/SQM
Properties on sale in resorts echoed the trend of sales prices, maintaining stable values in the 1st half of 2022, according to SIR-Resorts. Houses on sale in 2022 in resorts in Portugal had an average value of €4,301/sqm, not far off the €4,382/sqm of the previous semester and around the same level as in recent years, namely between €4,000/sqm and 4,500 €/sqm.
After diversifying their investment destinations in 2021, in 2022 British buyers are once again focused on the Algarve’s main axis for purchasing resort housing, namely around Albufeira-Loulé. According to SIR-Resorts’ results, the Brits made 56% of international acquisitions in this area in the 1st half of 2022, returning their share to above 50%, the same as in 2019 and 2020.
In 2021 however, British buyers bought less in this area (around 40%), moving to markets outside the Algarve. In 2021, Brits were the largest international purchasers of properties at resorts on Portugal’s Atlantic Coast (between the Oeste region and the Alentejo coast), with a share of around 20% of international buyers.