by Carolina Maia 17th March 2022
Resort property boom in Portugal

These are the most recent conclusions of the biannual report “Portuguese Resorts Market Report”, produced by Confidencial Imobiliário in partnership with the Portuguese Association of Residential Tourism and Resorts (APR), noting that, in terms of prices, this was one of the most significant increases since 2016, only surpassed by the 18.3% growth recorded at the end of 2018, when the Brexit agreement was approved.

“For a year and a half now, the prices of this type of real estate have shown signs of recovery and even in the period of a lockdown (1st half of 2021) they have risen (+8.6% year-on-year)”, stresses the report released by the APR.

The 2nd half of 2021 marked the third consecutive semester with positive chain changes, registering the highest half-year increase ever: 13%.

Alongside the strong appreciation, sales at resorts also increased sharply, growing by 70% compared to 2020 and exceeding 2019 activity by 30%.

Algarve resorts

In 2021, the average sale price of housing in resorts reached €4,205/m2, reaching its highest expression on the Albufeira/Loulé area, with sales reaching an average of €4,848/m2.

For Pedro Fontainhas, executive director of the Portuguese Association of Residential Tourism and Resorts, these results “confirm the growing trend, which the pandemic has accentuated, of looking for housing in resorts in Portugal with outdoor space, privacy, security, connectivity, services of support and proximity to nature. This trend is visible through the growing demand by customers of the most diverse nationalities, including Portuguese”.

Ricardo Guimarães, the director of Confidencial Imobiliário, said the resort market “is another one of the sectors with a strong performance in 2021, showing that the national residential market remains competitive and attractive in a transversal way, emerging reinforced from the pandemic crisis”.

Fewer Brits

The second year of the pandemic also brought important fluctuations in the structure of international demand for resorts. Buyers from the United Kingdom remain the main source of demand in Albufeira-Loulé, generating 42% of purchases by foreigners in 2021, but losing expression compared to previous years when their share exceeded 50%. This loss of share takes place in the context of more dynamic activity in other European countries, with emphasis on the Netherlands (12% of purchases by foreigners in this location), Ireland (9%), Germany, France and Switzerland (shares of 5% to 6%).

Higher prices

In 2021, resort-integrated housing available for sale in the country had an average value of €4,418/m2, reaching €8,374/m2 in the highest range of the market. In the main resort destination, the aforementioned Albufeira-Loulé, where 43% of the homes for sale are concentrated, the offer was placed at an average of €5,151/m2 and in the luxury segment it reached €10,064/m2, a level never before seen in the resort market.

Article by Portugal News