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Americans are Heating the Portuguese Real Estate Market

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A strong dollar attracts wealthy housing hunters.

More and more people from the USA are buying houses in the Algarve region, which increases the demand for a limited supply of villas by the sea in a once quiet area. That has pushed prices to an unprecedented level: two properties on local real estate websites cost more than €40 million.

"Some of the prices are ridiculous," said Michael Vincent, chief executive officer of Portugal Property, whose average sale price is now €1 million, which is about 70-80% higher than last year. "I've just had the best month in 50 years, and demand doesn't seem to be falling."

Examples. The average house in the Algarve region sold by Savills this year went for €4 million, which is twice the average price three years ago. Savills set a Portuguese record at the end of last year when an eight-bedroom villa by the sea with a swimming pool was sold for €18.5 million.

Quote. "Demand has grown more than we could have expected," says Kerstin Buechner, co-owner of the Savills branch in the Algarve. "After Covid, it was difficult to find enough supplies to meet this demand."

Reasons. Home buyers in the United States, faced with a rapid increase in housing prices, prefere Portugal, taking advantage of the strong dollar to buy a property in a country with a lower cost of living.

They were encouraged by the generous Golden Visa program, which allows participants to obtain a residence permit by investing at least €350,000 in real estate or €500,000 in a local venture fund. Demand from foreign buyers, combined with a housing shortage, contributed to a 13% increase in house prices in Portugal in the first quarter of the year.

However, the villas are relatively cheap compared to other popular European holiday destinations such as the Alps or southern France.

Propreties for sale in Algarve:
Apartment for 325 000 euro in Algarve, Portugal
325 000 €
Apartment in Algarve, Portugal
73 sq.m 2 1
Online Viewing Remote Transaction
Apartments of various sizes with 1 or 2 bedrooms are suitable for obtaining a "Golden Visa". The cost is from 325,000 euros. All apartments ranging from 73 to 174 m2 are sold with excellent finishes, furniture, have terraces, and some of them have a swimming pool or Jacuzzi. The complex has 24-hour security, access to an underground park...
Intermark Global
Apartment for 450 000 euro in Portimao, Portugal
450 000 €
Apartment in Portimao, Portugal
96 sq.m 3 2 2
This stylish, air conditioned, duplex penthouse is built using quality materials & state-of-the-art fixtures & fittings. Spanning 2 floors, with the 10th floor consisting of entrance hall & bright & spacious living/dining area with contemporary, open plan kitchen, fully fitted & equipped with highly lacquered cabinets & integrated, top of the...
Habita International Estates Ltd
Apartment for 504 000 euro in Vilamoura, Portugal
504 000 €
Apartment in Vilamoura, Portugal
81 sq.m 3 2 2
Welcome to Vilamoura Lakes - Where Life and Celebration Unite! Discover the epitome of sophistication in Vilamoura, a picturesque city nestled in a convenient bay. With over 300 sun-drenched days per year, pristine beaches, world-renowned golf courses hosting prestigious championships, top-notch equestrian infrastructure, and an...
Glacier Location LDA
Apartment for 760 000 euro in Lagos, Portugal
760 000 €
Apartment in Lagos, Portugal
210 sq.m 4 3 2
The condominium Santa Maria 2 - Apartments & Lifestyle is located in a development under construction in the city of Lagos, on the coast of the Algarve. The project offers a range of amenities including a swimming pool, gym, sauna, and private parking. The completion date for the project is scheduled for March 2024. Each apartment in Santa...
Glacier Location LDA
House for 699 950 euro in Silves, Portugal
699 950 €
House in Silves, Portugal
686 sq.m 11 8 4
Residence
Farm located in the "Barrocal" Algarve region area, in the S.B. de Messines, with easy and total accessibility(A2 motorway,2 km away)with, electricity and mains water. 12 hectares, including two urban plots of 750m2. of enormous potential to recover with 666m2 of possible gross construction area for housing with 11 divisions, and another urban...
Habita International Estates Ltd
Apartment for 210 000 euro in Portimao, Portugal
210 000 €
Apartment in Portimao, Portugal
51 sq.m 2 1 1
Just 260m to the fabulous Praia da Rocha beach, this lovely apartment is in a prime location. Overlooking the marina & River Arade from the living room & bedroom, this bright and homely apartment is perfect for a couple wanting to take advantage of all the Algarve has to offer. In a quiet street, at the less lively end of Praia da Rocha giving...
Habita International Estates Ltd
Apartment for 310 000 euro in Portimao, Portugal
310 000 €
Apartment in Portimao, Portugal
100 sq.m 4 3 2
3 bedroom apartment located on the 3rd floor of a building served by 2 elevators, with excellent sun exposure where all rooms are oriented to the south and with direct access to the spacious balcony. Building located in the Vilarosa urbanization, a short distance from Praia da Rochaerty in very good condition, with 2 bathrooms, pantry and...
Habita International Estates Ltd
Flat for 1 600 000 euro in Algarve, Portugal
1 600 000 €
Flat in Algarve, Portugal
4 3
Residence
Designed to fit the natural amphitheatre of the golf course and the beach, each Signature Apartment enjoys views of the sea or the Alvor estuary, which can be enjoyed from the large covered and uncoveredting the colors and textures of the natural environment, the apartments with one, two and three bedrooms plus one, are fully furnished and...
Mercury Group
Flat for 505 000 euro in Algarve, Portugal
505 000 €
Flat in Algarve, Portugal
4 3
Residence
Located in one of the quietest areas of Portimão, this new condominium is the ideal place to live, just 5 minutes from the center of Portimão and development consists of two lots, both with communal pool and all apartments have indoor parking space and largeosed of apartments of typology T2 and T3, with generous areas, which excel in modern...
Mercury Group
Flat for 520 000 euro in Algarve, Portugal
520 000 €
Flat in Algarve, Portugal
4 3
Residence
Located in one of the quietest areas of Portimão, this new condominium is the ideal place to live, just 5 minutes from the center of Portimão and development consists of two lots, both with communal pool and all apartments have indoor parking space and largeosed of apartments of typology T2 and T3, with generous areas, which excel in modern...
Mercury Group
Flat for 1 050 000 euro in Algarve, Portugal
1 050 000 €
Flat in Algarve, Portugal
3 2
Residence
More than an apartment ... a lifestyle!Large apartments with excellent natural lighting with luxury finishes just 10 minutes from the city center and its wonderful enterprise stands out for a very modern and bold architecture at the culmination of a new ideology of quality and an unwavering commitment to quality finishes and excellent services,...
Mercury Group
Flat for 780 000 euro in Algarve, Portugal
780 000 €
Flat in Algarve, Portugal
3 2
Residence
More than an apartment ... a lifestyle!Large apartments with excellent natural lighting with luxury finishes just 10 minutes from the city center and its wonderful enterprise stands out for a very modern and bold architecture at the culmination of a new ideology of quality and an unwavering commitment to quality finishes and excellent services,...
Mercury Group
Flat for 1 020 000 euro in Algarve, Portugal
1 020 000 €
Flat in Algarve, Portugal
3 2
Residence
More than an apartment ... a lifestyle!Large apartments with excellent natural lighting with luxury finishes just 10 minutes from the city center and its wonderful enterprise stands out for a very modern and bold architecture at the culmination of a new ideology of quality and an unwavering commitment to quality finishes and excellent services,...
Mercury Group
Flat for 830 000 euro in Algarve, Portugal
830 000 €
Flat in Algarve, Portugal
4 3
Residence
More than an apartment ... a lifestyle!Large apartments with excellent natural lighting with luxury finishes just 10 minutes from the city center and its wonderful enterprise stands out for a very modern and bold architecture at the culmination of a new ideology of quality and an unwavering commitment to quality finishes and excellent services,...
Mercury Group
House for 1 890 000 euro in Algarve, Portugal
1 890 000 €
House in Algarve, Portugal
427 sq.m 6 5
Residence
This luxurious five-bedroom villa has stunning views of the golf course and surrounding course and is set within beautiful private gardens with swimming influence of Moorish architecture is visible throughout this beautiful resort, with fresh, bluish courtyards, graceful arches and secluded terraces, and the villages are surrounded by lush...
Mercury Group
House for 650 000 euro in Algarve, Portugal
650 000 €
House in Algarve, Portugal
5 4
Residence
Remodeled 4 bedroom villa with sea view, swimming pool andllent villa totally refurbished and equipped with the highest quality, located 4 minutes walk from the beach, commerce, services andosed of:- Res floor: living room, dining room, equipped open kitchen, bar, 3 bedrooms, one is suite, 2 full rooms have windows with direct access to the...
Mercury Group
House for 3 850 000 euro in Algarve, Portugal
3 850 000 €
House in Algarve, Portugal
485 sq.m 6 5
Residence
In the village of the Resort you can find 12 villas, all of them with distinct areas with a central courtyard in common. All its construction and development was thought of in the harmonization between the interior and exteriore villas are totally independent, their large lots have areas ranging from 1700m2 to 3300m2 and divisions of 3 to 7...
Mercury Group
Flat for 600 000 euro in Algarve, Portugal
600 000 €
Flat in Algarve, Portugal
63 sq.m 2 1
Residence
Designed to fit the natural amphitheatre of the golf course and the beach, each Signature Apartment enjoys views of the sea or the Alvor estuary, which can be enjoyed from the large covered and uncovered terraces. Adopting the colors and textures of the natural environment, the apartments with one, two and three bedrooms plus one, are fully...
Mercury Group
Flat for 620 000 euro in Algarve, Portugal
620 000 €
Flat in Algarve, Portugal
4 3
Residence
More than an apartment ... a lifestyle!Large apartments with excellent natural lighting with luxury finishes just 10 minutes from the city center and its wonderful enterprise stands out for a very modern and bold architecture at the culmination of a new ideology of quality and an unwavering commitment to quality finishes and excellent services,...
Mercury Group
Manor for 3 500 000 euro in Algarve, Portugal
3 500 000 €
Manor in Algarve, Portugal
101520 sq.m
Residence
Farm with active agricultural production and approved project for rural tourism hotel with 2000m2, located next to Salgados and Galé, in property has a land area of 101.520m2, where you can find cultivation of vegetables, fruits, animal husbandry and property is fully fenced, has two water holes, tank, connection to water, electricity and...
Mercury Group

Source: Bloomberg
Photo by Humphrey Muleba on Unsplash

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