The British continue to be the main buyers of homes in Algarve resorts, according to the most recent study on the Market for Resorts in Portugal, carried out by Confidencial Imobiliário in partnership with APR – Associação Portuguesa de Resorts and with the support of Tourism of Portugal, for the first half of 2019.
According to this study, the British have «a 56% share in the Albufeira-Loulé axis, the leading national residential tourism zone».
The average investment value of the British, 5,621€/m2, also evolved positively in relation to the previous semester (it was between 5.000 and 5.500€/m2).
«No other country comes close to the British, although purchases were made by customers of 13 other nationalities, especially Ireland, France and the Netherlands. China, Russia, South Africa and the USA were other active countries in terms of purchases», highlights the Associação Portuguesa de Resorts (APR).
Many investors are attracted to buy real estate in the Algarve due to its beauty, culture, accessibility and location.
In the Barlavento region, there are 12 nationalities of investors, with emphasis on the British (27%), French (19%), Swedes (14%) and Irish (11%).
In this area, highlights the APR, «it is the Swedes who invest the most, on average €3.214/m2».
Within the resort market, «it is on the Albufeira-Loulé axis that we can find the highest price per house, above 7,6 million euros. In second place is the Atlantic Coast, where the price per house can reach 6,7 million euros”, reveals the association.
By square meter, the Albufeira-Loulé axis also has the highest prices in the market (4.723/m2), a value significantly higher than the other areas within the Algarve (72% higher than Sotavento and 43% higher than Barlavento).
When compared to the Atlantic Coast, prices on the Albufeira-Loulé axis are 20% higher.
Rui Meneses Ferreira, president of APR, stresses that “during the first half of 2019, the resort real estate market continued the cycle of recovery in sales prices started last year, despite the slower pace compared to the end of 2018. , after having reached an increase of 18,3% at the end of 2018, the valuation for this type of assets is now 10,7% more».
The APR recalls that "resorts are one of the property markets most closely linked to British buyers, who are among the biggest buyers of this type of asset and over which the fluctuation of the pound tends to have a greater influence on prices."
According to the association, "this explains the relative instability of prices alternating cycles of acceleration with periods of deceleration, reflecting the fluctuation of the pound since the Brexit was announced in June 2016".
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