PROPERTY
market update THE ALGARVE HAS LONG BEEN A GEM FOR THOSE SEEKING THE P E R F E C T B L E N D O F E U R O P E A N C H A R M , N AT U R A L B E A U T Y, A N D A L A I D - B A C K L I F E S T Y L E . W I T H A L A N D S C A P E T H AT R A N G E S F R O M P R I S T I N E B E A C H E S T O R O L L I N G V I N E YA R D S , T H I S R E G I O N C O N T I N U E S T O B E A H O T S P O T F O R I N T E R N AT I O N A L P R O P E R T Y B U Y E R S
Wo rd : A L I S O N B U E C H N E R H O J B J E R G
A
T A MACRO level, the Algarve real estate market
has been facing a persistent shortage of properties. Yet, intriguingly, our micro-market tells a different story. As is typical for this time of year, we are listing new, exciting properties that cater to a variety of tastes and budgets. Despite recent legislative changes that have sparked international conversations, the Algarve’s real estate market remains surprisingly resilient. The Non Habitual Residents (NHR) programme, which has been a magnet for retirees and expats, is anticipated to be discontinued in 2024. Likewise, the Golden Visa programme is approaching its conclusion. For many, these changes may seem like ominous clouds on the horizon. Still, here in our micro-market, the impact has proven to be minimal. It’s important to note that the buyers we attract are largely motivated by the allure of the Algarve’s lifestyle, rather than visa or tax
perks. Approximately only 5% of our database motivation to buy is the NHR. Noticeable is that approximately 15% of all foreign property buyers in Portugal are now coming from the United States, which indicates an emerging market that holds huge potential. According to data from Idealista, the interest from the USA in purchasing property in Portugal surged by over 80% between 2020 and 2022. It’s a new and exciting chapter for Algarve real estate, and we believe that the numbers will continue to soar. As we prepare to explore this new frontier, it’s worth noting that, while these international legal changes may raise eyebrows elsewhere, our existing clientele has remained largely unperturbed. The heart of the matter lies in the fact that clients don’t just buy property in the Algarve, they buy a lifestyle.
