From buying a first or second home, exchanging property, acquiring VISA or buying property to enhance portfolios of assets, luxury real estate is a very popular topic among investors in Portugal. A ONE Select Properties offers more than 40 years of experience in the luxury real estate business in the Algarve and has a positive forecast for this year.
Although market professionals predict a slight slowdown in the “tree real estate” post-pandemic sense in 2021-22, this year presents a slow and steady forecast for the luxury real estate business. Even more so for established and niche resorts such as Quinta do Lago, Vale do Lobo and Vilamoura. Real estate experts predict that prices will remain stable, allowing the relationship between buyers and sellers to even out and stabilize.
As indicated by market analysts at Luxury Portfolio International, the “buying excitement has worn off” and buyers are now becoming more patient, thoughtful and scrutinizing future property purchases. In 2022, global wealth saw a 13% increase, and while 2023 may see a slight decline in that number, luxury property buyers are still willing and confident to make big purchases.
In certain market niches, such as luxury resorts such as Quinta do Lago and Vale do Lobo, with a much higher than average purchasing power, macroeconomic implications are not considered as a priority when analyzing the purchase of properties worth millions of euros. Direct needs and wants overshadow most economic, social and political events at the macro level.
While property purchases in the Golden Triangle are rarely dependent on mortgages, the drop in rates will allow potential homebuyers to re-evaluate their investments. This opens up the market to new customers, also making this location less dependent on cash purchases.
Customers still view luxury real estate as a safe investment and pandemic-driven home buying is likely to continue. Buyers are investing according to the lifestyle they want or see becoming a global trend, need or desire. In addition, office occupancy rates continue to decline and working from home translates into the possibility of remote professional careers and in luxury resorts.
The beginning of 2023, particularly in this luxury bubble, has shown results that are in line with these forecasts. As an area primarily reliant on seasonal occupancy, luxury resorts have now become home to families and remote workers looking for a post-pandemic lifestyle change. Market prices are stable and a slight increase in the availability of properties for sale has started, which allowed the year to start at a regular and strong pace.