Overseas Property Buyers Increase as Prices Lower in Portugal’s Eastern Algarve

  • 7 years ago
  • Uncategorized

The Algarve coast in Portugal is one of Europe’s more popular second-home destinations. But while most tourism investments and developments have shifted to the central region; Lagos and Faros, the 144km coastline of the eastern stretch has been neglected. However, the region still has a lot to offer.

The eastern Algarve begins from the town of Olhao and ends in the little-known resort of Vila Real de Santo Antonio bounded by Spain. It is half an hour drive from Faro airport, yet it’s peaceful and somewhat rural in comparison with the more glamorous “golden triangle” of the central resorts Quinta do Lago and Vilamoura.

The halt to the development of Algarve coast is partly due to the ecological efforts to preserve the Ria Formosa Natural Park. A decision which has seen construction restricted in nearby areas. The beaches along its 170km stretch of lagoon provides a casual summer resort for day travellers. However, it cannot be constructed on, so any property development inland isn’t as profitable as the adjoining regions.

In spite of this, more buyers continue to make enquiries about property in the area. According to David Holder, Managing Partner of Fine & Country’s Tavira office, buyers who come to Algarve don’t necessarily do so because they have been outpriced in the central regions. Instead, they are more interested in the authenticity of the area.

In last year’s report, Knight Frank reported that Algarve recorded a price growth in property price for the first time since 2008.  Currently, average prices in eastern Algarve range from €3,000 to €4,500 per sqm. Down the west, prices start from €4,000 but get as high as €6,000 and €8,000 per sqm in luxury resorts.

Portugal’s eastern Algarve may not be as lucrative as it neighbouring central regions, but its originality is bringing it some attention. Hopefully, as the interest grows, investors will flock into the area to leverage the opportunities.

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