Property in the Algarve

The property market in Portugal has been stable for the last 20 years, but property in the Algarve represents the country’s investment flagship. Indeed, property prices in the Algarve have increased by 25 to 50 per cent over the last three years. They continue to rise. And then there are the corresponding rental yields. Whichever way you look at it, property investment in the Algarve equals high return.

The Algarve is Portugal’s most popular region for property investment. The wide choice of investments - apartments, townhouses, luxury villas - will always hold a strong appeal as holiday homes and rentals. Indeed, demand is comfortably in line with supply.

The Algarve’s commonly recognized status as the world’s number golf destination is hugely instrumental in the region’s strong capital appreciation. Upcoming developments are expected to achieve 10 per cent-plus capital appreciation and near double-figure rental returns.
And, while prices of property in the Algarve are on a steady increase, they remain lower than those of the most popular investment regions in France and Spain.

As far as the natural environment is concerned, development of property in the Algarve is subject to the stringent regulations of a no-compromise policy. The beachfront, in particular, is heavily protected: building within 500 metres of the beach is prohibited, as is building higher than four storeys. The Algarvian coastline’s natural beauty - and our enjoyment thereof - are here to stay.

The completion of the final section of the A22/IP1 motorway has rendered the bustling tourist destination still more accessible. Linking Vila Real to St Antonio to Lagos, it provides a fast and user-friendly route across the entire region.

The most popular property investment areas in the Algarve are Quinta do Lago, Pinheirros Altos, Vale do Lobo and Vilamoura. But with the opening of the new motorway, the Western Algarve is rapidly gaining ground.