Following a year in which real estate sales dropped by around 13%, the Algarve remains on the radar of foreign investors in 2021. According to the financial institution UCI, which specialises in home loans, this year will see a recovery “both in terms of number and volume of transactions”.
In an interview with the Sul Informação newspaper, Tiago Jerónimo, director of the UCI Algarve branch, said that there will be an increase in house sales this year, driven by the “return of foreign investment, mainly from the British market”.
As he explains, in 2020, the British market showed a different trend to what we have been accustomed to: “For the first time, the group of other nationalities that applied for financing surpassed the British market, representing 66% of transactions”, compared to 44% of British buyers.
Among the rising markets were countries in central Europe, such as Switzerland, Germany and the Netherlands. “We even noticed that many foreigners are buying a house under the Non-Habitual Residents regime [read more], because many can do their work remotely and still have a tax incentive,” added Jerónimo.
Brits still “want Algarve”
Despite concerns around Brexit, British buyers are still looking overseas. Portugal is among the top three choices, following Spain and France. More than half of those looking to buy in Portugal “want Algarve”.
These were the results of a recent survey conducted by A Place in the Sun property magazine, which aimed to establish whether investors are still interested in investing abroad, despite Brexit and the current pandemic.
The survey found that 76% of house hunters are not put off by buying in the EU, despite the implications of Brexit. And of the almost 7,000 respondents, “30% are now more motivated than ever to buy a property overseas as a direct result of COVID-19”.
Whether you're looking to buy a home in the Algarve, or want to time it perfectly to sell your property here, get in touch with the real estate experts at get in touch with the real estate experts at Algarve Home Sales.
