In what has been considered the best year for the Algarve real estate market since the recession (read here), 2019 has also seen some new trends emerge. The data was gathered by real estate databank Confidencial Imobiliário, in its latest report released this month. It highlighted five key trends:
- The Algarve hills are new property hotspots
The region’s coastline has traditionally been the most sought-after area for home-buyers in Portugal, with property prices reflecting demand. Recently, however, there has been a shift in interest, with many buyers now looking inland (the so-called Barrocal) and to the hills of the Algarve. The trend has been driven mainly by French and Swedish buyers, who are looking for renovation projects. Between 5 and 10% of all property sales are now in this region.
- The British are buying more houses
Perhaps unexpectedly, the issue of Brexit has driven more British buyers to invest in property in the Algarve. The prospect of leaving the EU has led more UK nationals to seek assets indexed to the European currency, although there is still some apprehension regarding the outcome of Brexit and its impact on the devaluation of the British pound.
- Buyer markets are increasingly diverse
The Brits may be buying more houses, but investors are coming in from all four corners of the globe. From Central and Northern Europe to South Africa, Brazil and the USA, there has been a significant increase in the diversity of nationalities looking to buy property in the Algarve.
- Properties are selling in less time
According to the Portuguese estate agents association APEMIP, around 53% of houses in 2019 were sold in less in three months. They note, however, that over-valued properties are only sold when they reach market price.
- Current building pipeline should address supply shortage
The recession in 2008 led to the shelving or bankruptcy of many residential tourism projects in the Algarve. The current demand and rate of sales has led to a shortage of available properties, but there are now projects in the pipeline that point to more new construction in the near future.
Take a look at available properties across the Algarve here.
