The Algarve's famous beaches, scenic towns and pleasant year-round weather have long drawn visitors, predominantly from Europe. Now, the region is seeing a wave of US buyers, who make up a significant portion of high-end home purchases.

According to the National Statistics Institute (INE), over 1 million tourists from the US visited Portugal in the first half of 2024, nearly double the number of visitors in the same time period in 2022. Today, 10% of all foreign homebuyers in Portugal are American.

Alongside the mild climate and lifestyle benefits, many are drawn by remote work programmes that make relocation a lot easier. The direct flights from Newark to Faro with United Airlines, from 2025, will no doubt boost these numbers.

But the boom comes at a price: in the past year, the cost of prime properties in the Algarve has risen by more than 30%, driven by wealthy Americans with a stronger dollar seeking a new lifestyle.

The result is a tight supply of high-end properties, particularly in the areas of Quinta do Lago and Vale do Lobo, where sales of properties priced over €20 million are not uncommon.

Overseas buyers are in love with the Algarve – and helping to drive up property prices. Partnering with a local estate agent such as Algarve Home Sales is the best way to navigate this competitive market and secure a prime property at the best price before it’s gone. Get in touch!