In an impressive display of growth, the Algarve luxury property market has continued to attract high-end real estate investors and affluent buyers in 2024 driven by international expats, predominantly.
Recent research from Property Market-Index independent report state that the Algarve property market saw an increase of 15% in the past year.
In the recent summer months of 2024, locations such as Silves in Central Algarve saw a 10.9% increase, with Ferragudo seeing 9.6% increase followed by Lagos in the Western Algarve at 9.7% and Tavira, east of Faro seeing a 9.5% growth. The Golden Triangle areas such as Vale do Lobo, Vilamoura, and Loule have seen a growth of 5.8% in comparison and Albufeira saw similar growth this summer.
Separately Idealista reported in 2024 that luxury homes in the Algarve experienced the 4th biggest increase in the world, showcasing the resilience of the luxury property market side in the face of global market downturns.
The region offers a diverse array of luxury properties to suit various tastes and budgets, ranging from expansive estates to top-end modern luxury apartments.
So, what can your money buy today in the Algarve?
Quinta Heights, a luxury property development set for completion in 2025, is positioned as a competitive player in the Algarve's high-end real estate market.
Nestled between Ferragudo and Carvoeiro in the Central Algarve, it offers modern comforts such as a spa, yoga studio, gym, on-site restaurant, rooftop cocktail and tapas bar, sports facilities, private landscaped gardens and its own unique observatory, to name a few.
Its strategic location, combined with a lower price per square metre, makes it an attractive investment for buyers seeking luxury without the high costs associated with some of the region's other high-end developments and this area in particular is seeing significant capital growth gains in recent months compared with the Golden Triangle.
Quinta Heights, Ferragudo location, also offers stunning views of the Atlantic Ocean on one side and the Monchique Mountains serving as a beautiful backdrop on the other side, giving amazing 360-degree views.
Quinta Heights provides a more affordable alternative to other luxury developments in the Algarve and particularly against the cost per square metre seen in the Golden Triangle. The development offers spacious three-bedroom apartments, from 121 m² and priced from €1,116,000. Additionally, two-bedroom apartments range from 93 m² and are available from €744,000 or €8,000 per square metre.
In contrast, The Palms, completed in 2016 and also located in Ferragudo, offers three-bedroom apartments, spanning 181.7 m², at a price of €2,200,000, or €12,154 per square metre. The Palms is part of the Vila Castelo Parque development, known for its modern style and high-quality finishes.
The Palms has benefitted from strong demand, reflecting its premium build quality and desirable location
The Creek, located in Vilamoura, is another upcoming development with a projected completion for 2025. It features larger three-bedroom apartments, each spanning 143 m², priced significantly higher at €2,700,000.
This equates to €18,881 per square metre, making it one of the most expensive luxury new homes developments in the area. Both The Creek and Quinta Heights have expansive amenities, including a sauna, gym, restaurants, swimming pool, and in the case of The Creek, a prime location surrounded by golf courses.
Lumare, another notable development in Vilamoura, is expected to be completed in 2027. It offers three-bedroom apartments, spanning 161.3 m² and priced at €2,200,000, which is €13,664 per square metre.
Lumare provides fewer on-site facilities compared to The Creek or Quinta Heights, but maintains a high market value due to its luxurious design and proximity to key amenities like the Vilamoura Marina and Faro Airport.
W Residences in Albufeira, completed in 2022, represents another high-end option in the Algarve. It offers one, two, three and four bedroom apartments, with its two bedroom apartments being sold at €1,450,000, or €17,683 per square metre, spanning 82 m².
This makes the two-bedroom apartment at W Residences nearly double that of a two-bedroom apartment at Quinta Heights for similar specification and amenities.
W Residences does offer stunning amenities, including a spa, multiple restaurants, a fitness centre, 24-hour concierge services and managed operations by the Marriott Group.
The Algarve's luxury property market offers a range of high-end options catering to different tastes and budgets. Quinta Heights presents the most value in these comparisons.
Conversely, developments like The Creek and W Residences are also in demand despite the significantly higher cost per square metre.
Portugal Pathways is currently offering real estate investors and affluent buyers the opportunity to talk to one of our experts in the luxury real estate market in the Algarve, to better understand the locations and the relative benefits and options available. Arrange a call now!
You can access the latest Property Market-Index report along with the details of the capital growth increases this summer, particularly in the central Algarve region such as Ferragudo, Silves, and the edges of the Golden Triangle near Faro airport.
Steve Philp, a spokesperson for Portugal Pathways, the online platform supporting affluent expats relocating or investing in Portugal said:
"There are a number of luxury property developments in the Algarve region that are offering really high specifications, but the Golden Triangle region price per square metre has limited the scope and budget for many.
‘’However, recently, we have seen affluent expats and families gravitate towards the new luxury homes developments in the Central Algarve rather than just those in the Golden Triangle.
‘’This shift is partly due to the favourable locations that offer a sense of Portuguese authenticity, stunning beaches and coastlines, culture, as well as the lower cost of living and value you can receive, which is making the Central Algarve very attractive for investors and buyers currently, compared to the Golden Triangle.’’
With Portugal experiencing a year-on-year increase, nearly double the capital growth seen in Europe, UK and North America during 2024, this is further highlighting Portugal’s global status as the number one relocation destination in the world according to recent ‘Wealthy Expats in Portugal Survey Report 2024’.
