Latest insights point to steadiness and stability in Portuguese property market

• RICS/Ci report highlights “largely steady backdrop across the sales market” and “generally stable trend in demand”
• Kronos Homes flags up “new instructions and exclusive opportunities” as driving interest
• Property Market-Index projects 5.6% growth in high-end home values in 2024

JLL’s 2024 Q1 Market Pulse observes that the Portuguese real estate market is performing identically to Q1 2023 in most sectors. Meanwhile, the language in the latest (April 2024) RICS/Ci Portuguese Housing Market Survey is all about steady and stable trends, with prices starting to increase again in response to a resurgence in demand.

The latest research by Property Market-Index adds further positivity. Its review of the luxury market flags Portugal’s high-end hotspots as likely to increase in value by 5.6% in 2024. Lisbon and the surrounding areas, Porto, Braga and parts of the Algarve and Silver Coast are all tipped for higher-than-average market growth during this period.

Looking further ahead, indications are also positive for the Portuguese property market. Tarrant Parsons, RICS Senior Economist, comments that,

“Further improvements in disposable incomes in tandem with the prospect of falling interest rates across the Eurozone should further facilitate activity within the real estate industry over the remainder of the year and particularly through 2025.”

Back in the more immediate term, sales expectations are particularly high in the Algarve for the next three months, according to RICS/Ci. Real estate developer Kronos Homes mirrors this confidence, with Regional and Real Estate Director Alda Filipe commenting:

“A number of new instructions and exclusive opportunities, as well as the diversity of the Algarve’s property offering, should deliver excellent results for home sales in the region over the summer, as well as through the end of 2024. A strong appetite from foreign buyers underpins this, along with stable domestic demand.”

The latest figures from the Bank of Portugal reflect the strength of international interest. Of the €1,000 million worth of foreign direct investment that poured into Portugal during the first three months of 2024, €682 million was invested in real estate.

Real estate opportunities likely to delight international buyers in the Algarve this summer include two rarely available land plots at the prestigious Vale do Lobo resort, owned and operated by Kronos Homes. Priced at €6.36 million (plot 2129) and €6.57 million (plot 2130), the impressive parcels of land cover 4,229m2 and 4,413m2 respectively. Located just a couple of minutes’ stroll from the sands of Vale to Lobo beach, which stretches for 2km along Portugal’s southern coast, the plots provide exceptional sea views.

Yet the diversity of Portugal’s property market means that buyers don’t need millions to pick up a home there. At the five-star Monte Santo Resort in the picturesque central Algarve town of Carvoeiro, properties are priced from just €279,000. Already built, fully furnished and ready to move into, the beautifully designed homes include apartments with one to three bedrooms and two- and three-bedroom villas.

Towards the western end of the Algarve, Salema Beach Village also makes owning a home in Portugal easy, with fully furnished and equipped villas available from €340,000. Nestled between the spectacular Costa Vicentina Natural Park and the serene Salema Beach, the three-storey homes are ideal for buyers seeking a quiet, authentic Portuguese lifestyle.

Homes at all three resorts – Vale do Lobo, Monte Santo and Salema Beach Village – come with plenty of on-site amenities. From pools to sports courts to spa facilities (and so much more), buyers can enhance their real estate experience by choosing a home that supports everything from indulgent relaxation to an active outdoor lifestyle. This exceptional offering does much to support the long-term prospects of Portugal’s real estate market’s appeal.