This past year has been reinvigorating for the real estate market in the Algarve. Property purchase transactions throughout Portugal reached a record breaking number, in the past 5 years, of 250,000 homes sold. In Quinta do Lago and surrounding areas, this has definitely resonated, which again confirms and demonstrates the stability and reliability of the real estate sector.
As Portugal becomes the second country in the world, following the United Arab Emirates, with almost 90% of the population vaccinated against COVID-19, we are on the right path to keep a healthy national and international economy, following two globally tough years.
With this global pandemic seeming to reach a controlled halt, the vaccine rollout for 2022 will be crucial, more importantly, for the hospitality sector in Portugal, which should see a pickup in foreign demand, as travel restrictions are updated and vaccination rates increase.
With international travel boarders safely opened, the demand for high-end luxury properties should maintain for the coming year. Alongside confidence in the market, a global shift for more accommodating homes located in city vicinities, with safety, health and life-enhancing facilities available, Quinta do Lago and the surrounding areas will prove to be a sure investment for the coming years.
How Will The Algarve Real Estate Market be Impacted?
The future of the real estate market will depend on the vaccine rollout of the first two quarters of 2022. Specifically in Northern European countries, that are expected to reach close to full vaccination in the second semester of 2022 (PWC, 2021). Mostly impacted by this rollout has been the hospitality sector in Portugal, which should see a pickup in foreign demand as travel restrictions are updated and vaccination rates increase.
With Portugal reaching a GDP of 4.8% in 2021 (a 4.2% growth from 2020), higher than forecasted, experts indicate a steady economic recovery path, reaching 5.6% GDP values for 2022. As indicated by the Portuguese Prime Minister, Antonio Costa, the national economy has shown an incredibly resilient comeback and has revealed all the “right ingredients” to keep growing.
2022 Luxury Property Trends
Despite economic uncertainties, the property market in Portugal has shown throughout the years to be a resilient and stable investment. According to the National Institute of Statistics (INE) median property prices have been on the rise since 2020, at +6.8% this past year, a value more accentuated than other countries in the EU.
In the past 10 years, the price per square metre, in Portugal, has risen by 86%, from €1,432/m2 in 2010 to €2,670/m2 in 2020. Whilst this increase can be noted nationally, experts point to a similar increase of 70%, per square metre pricing in the Golden Triangle area. Clients looking for luxury homes in Portugal mainly seek a property in Lisbon, very closely followed by buyers who prefer the Algarve, specifically the Golden Triangle lifestyle, where 60% of luxury property searches are conducted by foreigners.
British buyers have always been prominent property owners in the Golden Triangle and when the Brexit deal was proposed the Algarve real estate market was predicted to suffer. Undeterred by so, the nationalities which have most seeked luxury homes in the Algarve are British (55%), Irish (20%), German (10%), French (7%) and Other (6%).
The Rise of Remote Work/Living
More than ever, property buyers are looking for locations in the vicinities of big cities or town centres, with an expansive outdoor space, large terraces, a home office, more bedrooms and bathrooms and overall communal, lifestyle enhancing amenities.
Properties in the luxury resort of Quinta do Lago and the surrounding areas, are indeed the answer to all of these and more requirements. This location provides expats and international buyers with the lifestyle they have always wished for. Large fortunes, all over the world are seeing the potential in the Portuguese real estate sector, specifically in luxury homes. With the current advantageous international accords, an interest has been noted in investments able to profit from the Non-Habitual Residency scheme and the Golden Visa.
Real estate experts point out, that the future of the Portuguese real estate market, will depend on the support given to extremely important sectors such as tourism and hospitality.