Despite a decline in property purchases by non-EU investors, Portugal’s real estate market continues to see rising property prices. But opportunities still exist, especially for those eyeing the Algarve region.

Even though the typical Algarve homebuyer in the last few years has been an overseas citizen, there has been a recent shift in the trend: according to recent data, in the second quarter of 2024, house sales to foreign residents declined by 2.8%.

EU buyers have shown resilience, with a 5.8% increase in transactions, while transactions by non-EU residents fell by 10.2%, despite a growing number of Americans purchasing high-end properties in the Algarve.

This recent shift in international buyer behaviour, however, hasn’t deterred the overall market growth, as domestic demand and favourable conditions continue to drive prices upward.

The latest figures from the National Statistics Institute (INE) show that home prices in Portugal rose by 7.8% in the second quarter of 2024, with the number of transactions increasing by 10.4% – the first significant rise in two years. Existing homes have seen sharper price increases (8.3%) compared to new builds (6.6%).

For potential homebuyers, particularly those eyeing property in the Algarve, the current market offers both challenges and opportunities. With prices climbing and foreign interest in flux, acting sooner rather than later could secure a solid investment in this popular region.

The Algarve remains a desirable location for both lifestyle and investment. A local property expert like Algarve Home Sales can assist you in exploring options while monitoring market trends to help you make a well-informed decision. Get in touch now!