While Portugal’s national housing market has seen only tentative improvement in recent years, prime Algarve property has shown a marked upturn. In Quinta do Lago, for example, the very best properties have exceeded their pre-crisis peak, with sales volumes increasing by 70 per cent between 2014 and 2015.
The rise comes as many wealthy individuals find themselves fully invested in first-tier cities, where prices are at a high plateau, and are now looking at second-tier cities and leisure retreats like Quinta do Lago. An added advantage for prime Algarve, however, is that it did not see high levels of overbuilding in the run up to the market peak, consequently stock levels remained low, which has been a major driver of price growth as demand has returned.
Central to the appeal of the Algarve is its excellent connectivity to the rest of Europe. Annual passengers numbers at Faro airport exceeded six million for the first time in 2014, an increase of 34 per cent of the previous decade. The airport provides direct links to 80 destinations across Europe, of which 23 are to UK airports. Faro airport is undergoing a €32million expansion and remodelling programme that will result in a 25 per cent increase in peak passenger flow capacity.
Therefore, with its low levels of supply and a product tailored to the luxury second home market, we believe prime Algarve is in the perfect position to benefit from strengthening demand in the years to come.