According to the latest report by Confidencial Imobiliária, operator expectations for resort property transactions are at a three-year high. This growing confidence is linked to a broader recovery in Portugal's residential market and an improved macroeconomic environment.

The 'Portuguese Resorts Market Report', in collaboration with the Portuguese Association of Residential Tourism and Resorts, highlights a period of decline in the first half of 2024, primarily due to the end of investment incentives such as the Golden Visa scheme.

However, optimism is returning, particularly in well-established resort areas like the Albufeira-Loulé axis, where the diversity of international buyers increased from five to eight nationalities during this period. British buyers remain dominant in the region, although their share has fallen from 62% to 47%.

Pedro Fontainhas, Executive Director of the Portuguese Association of Residential Tourism and Resorts, noted: “Despite the slowdown in early 2024 due to the end of Golden Visas, we now see positive signs for the rest of the year. Investor interest remains strong, and we expect continued property appreciation in areas like the Algarve.”

Property prices in resorts saw a 5.9% increase in early 2024, with luxury homes reaching up to €12,250 per square meter along the Atlantic coast. Key Algarve markets such as Albufeira, Lagos and Loulé showed stable price trends, reinforcing the region’s attractiveness.

For those considering buying property in the Algarve, this recovery signals a prime opportunity. The area's appeal continues to grow, offering excellent value for investment or relocation in one of Europe's top resort destinations. Contact us at Algarve Home Sales for expert advice.