Throughout last year, investors from overseas spent record-breaking amounts on Portuguese real estate. And while all regions saw an increase in home purchases, the Algarve stood out above all others.

The increase in purchases by international buyers was registered both in terms of the number and the value of the total sales across Portugal. According to the National Statistics Institute (INE), almost a third of these transactions were in the Algarve region.

"Housing purchases by buyers with a tax residence outside Portugal in 2023 were mainly located in the Algarve (29.9%), followed by the North (17.5%) and Greater Lisbon," said the INE press release.

In fact, real estate sales in the Algarve accounted for 38.5% of the total value of transactions in Portugal in 2023, which is understandable given that the region is the second-most expensive to buy property after Greater Lisbon.

Even though house sales in Portugal fell 18.7% in 2023 to seven-year lows, international buyers are still attracted to everything the Algarve has to offer, often paying more for property per square metre than their local counterparts.

The latest INE data shows that the average price of a property purchased by overseas investors in 2023 was €205,193, whereas resident buyers invested an average of €193,830 for a home in Portugal.

The good news is that there are now more properties on the market. The other good news is that Algarve Home Sales can help you throughout the entire buying process. Get in touch to find the best deal for your perfect home in the Algarve.