Prime Algarve Residential Market

Prime Algarve Residential Market
 
Outlook

29 March 2016, by Paul Tostevin

New development, rebuilding and resort investment is modernising the property on offer

 

 

 

■  Portugal’s economy is forecast to continue its tentative recovery. Economic reform is already making the country more appealing to investors, and Lisbon has been the major beneficiary of this. While the Prime Algarve has proved to be sheltered to nationwide economic conditions, it is not completely disconnected from national performance. A stronger Portugal will further instil confidence in the region.

■  The region’s best resorts have ‘safe haven’ qualities, offering prime property in a low supply, secure environment, attractive to international investors. This puts the Prime Algarve in a strong position at times of volatility in other asset classes.

■  The resorts of the Prime Algarve are evolving to meet modern day occupier demands. Contemporary homes are replacing first generation villas and resort investment is ongoing. The region benefits from a diverse range of occupiers, from young families to retirees. In line with an ageing European population, we anticipate growing demand from downsizers, representing a yet untapped market segment for smaller properties.

■  The resorts of Quinta do Lago and Vale do Lobo have an overwhelmingly British client base, supplemented by other Europeans. This means dependence on the UK economy. Relatively little demand has come from emerging markets via Portugal’s ‘Golden Visa’ scheme, who typically seek urban product close to the minimum investment mark. Longer term, the question remains if wealth from China and other new markets find its way to the Algarve. As tastes mature and budgets rise, new investment may follow.

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Key Contacts

Paul Tostevin

Paul Tostevin

Associate Director
World Research

Savills Margaret Street

+44 (0) 20 7016 3883

 

Hugo Thistlethwayte

Hugo Thistlethwayte

Head of
International Residential (Operations)

Savills Margaret Street

+44 (0) 20 7409 8876

 

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