The Algarve region in Portugal is no longer a hidden gem but rather a thriving real estate market attracting attention globally, particularly from American buyers. The surge in prices for prime properties, with increases of over 30% in the past year, has positioned the Algarve as an attractive location for property investment.
Tourism is identified as a primary driver of the real estate boom in the Algarve, with a significant increase in American tourists visiting the region. The appeal lies in the region's picturesque coastal towns, golden beaches, and pleasant year-round climate, making it a desirable destination for property buyers. The shift towards American buyers in the high-end property market in the Algarve is notable, with an increase from less than 1% before the pandemic to a substantial percentage currently. The demand from American buyers has noticeably impacted prices, setting records and driving up the average price of prime properties significantly.
Apart from tourism, factors such as Portugal's digital nomad program, offering residency to non-EU residents who meet specific income and savings criteria, have also contributed to the rise in foreign demand for real estate. This, combined with the allure of a different lifestyle and the favorable cost of living in Portugal compared to other popular European destinations, has made the Algarve an appealing choice for American buyers looking to invest in property. The end of Portugal's "golden visa" program for real estate investments has not deterred American interest in the region, as the appeal of a new lifestyle, stable politics, and the opportunity for remote work continue to draw buyers to the Algarve.