The Algarve in Portugal is one of the best places to buy property in Europe. Sun, sea, and good rental income are just some of the reasons why investors from all over the world are favouring this coastal region.
As destinations go, the Algarve has everything—with plenty of amenities, good connections, a welcoming population, and a fantastic climate. A relatively low cost of living compared with other European countries also provides plenty of value for money. This has long attracted tourists and expats in huge swathes.
The Algarve is Portugal’s top touristic region, recording themost overnight stays in Portugal (19.1 million) in 2022. The area has also won “Europe’s Leading Beach Destination” at the prestigious World Travel Awards for the past four years.
Over 16,000 people have moved to the Algarve in the last ten years. The country’s attractive visa programs (namely the “Golden Visa”) have helped spur immigration and foreign investment. Investment from the program increased 42% last year, totalling €654.2 million, and almost 50% more visas were granted than in 2021.
To demonstrate the level of foreign demand, 1 in 3 househunters in Faro—the capital of southern Portugal’s Algarve region—are from abroad. In comparison, foreign buyers make up around 20% of the demand for homes in other major touristic areas such as Lisbon and Porto.
Furthermore, people from abroad make up 38% of the demand for rental properties in Faro. Again, this beats Lisbon at 29%, and just tops Porto too. As the country’s leading touristic region, it comes as no surprise that rental properties are so sought after in this sunny coastal region of Europe.
Investing in the Algarve
When it comes to overseas property investment, the Algarve will always be a popular location. An outstanding climate, high quality of life, and a regular source of rental income when the property is vacant make the region perfect for anyone who wants a second home in the sun.
The median price of property in the Algarve increased by 17.6% in real terms (and 7% when adjusted for inflation) in the year to November 2022. With this, price growth in the region is outperforming the national average.
Whether you’re looking for a lucrative long-term investment or to generate a solid rental income, the Algarve is one of the world’s best places to purchase real estate. We have several properties in the region which you can enjoy for personal use, rent out, and even secure yourself one of the country’s renowned Golden Visas. Get in touch if you’d like to know more.
Contact us for information on real estate opportunities in the Algarve.
