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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:
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 249 000 euro in Portimao, Portugal
249 000 €
Apartment in Portimao, Portugal
100 sq.m 4 3 2
This 3 bedroom, 2 bathroom apartment in the heart of Portimão Old Town, has just been refurbished, to the highest of standards, with new plumbing, full electrical re-wire, spotlights, double glazing, laminate flooring, electric shutters & pre-installation for air-conditioning. Plus a brand new kitchen with top-of-the-range appliances & 2...
Habita International Estates Ltd
Flat for 199 000 euro in Portimao, Portugal
199 000 €
Flat in Portimao, Portugal
49 sq.m 2 1 1
Online Viewing Remote Transaction Credit
An attractive apartment in Porto, just 400 meters from the beach, where there are many entertainment and restaurants, you can enjoy delicious fish dishes. Stunning views of the coast. The apartment is located in a quiet area. This pleasant apartment is ideal for living, relaxing or monetization. Fully furnished and equipped, 6th floor with...
VRC Idrisova
Apartment for 470 000 euro in Portimao, Portugal
470 000 €
Apartment in Portimao, Portugal
159 sq.m 4 3 2
This is a high quality, luxury apartment in a brand new building with a communal swimming pool & 2 private indoor parking spaces. Ready to move into in December 2024, this 3-bedroom, 2nd floor apartment has air-conditioning in all rooms & underfloor heating in both bathrooms. The kitchen is fully fitted & equipped with top-of-the-range BOSCH (or...
Habita International Estates Ltd
House for 660 000 euro in Algarve, Portugal
660 000 €
House in Algarve, Portugal
141 sq.m 4 3
Residence
Fantastic modern villa under construction, inserted in a plot of 168m2, with a construction area of 141m2. Basement common to the 5 villas, with individual boxes with direct access to the 0th floor. Plot with private patio to the east and west and terrace on the top floor, with unobstructed views. This villa under construction is perfectly...
Mercury Group
Flat for 530 000 euro in Algarve, Portugal
530 000 €
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
Manor for 1 300 000 euro in Algarve, Portugal
1 300 000 €
Manor in Algarve, Portugal
Residence
Farm in Albufeira with excellent property has an old house and several annexes to recover and / or is served by electricity, water and sewage supplyted five minutes by car from the center of Albufeira, with access by tarredently the activity of planting carob and almond trees is developed, but it has great potential for any type of activity or...
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 860 000 euro in Algarve, Portugal
860 000 €
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 840 000 euro in Algarve, Portugal
840 000 €
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 895 000 euro in Algarve, Portugal
895 000 €
House in Algarve, Portugal
210 sq.m 6 5
Residence
Luxurious private villa with stunning views over the city of Albufeira, mountains and sea, with the Atlantic Ocean on thented to the south, the villa is served by excellent access, wide and tarred streets, wooded flowerbeds and is located a few minutes from the historic center and the beautiful beaches of the city of Albufeira, its Marina and...
Mercury Group
House for 500 000 euro in Algarve, Portugal
500 000 €
House in Algarve, Portugal
4 3
Detached house, inserted in a plot of 3640m2, with construction area of villa consists of three bedrooms with wardrobes, modern kitchen, pantry, living room with fireplace, two complete and current bathrooms, hallway, three sunrooms, patio, garage and a huge state of conservation is veryted 1 km from the center of Albufeira and Guia, very close...
Mercury Group
House for 4 000 000 euro in Algarve, Portugal
4 000 000 €
House in Algarve, Portugal
483 sq.m 7 6
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
House for 3 100 000 euro in Algarve, Portugal
3 100 000 €
House in Algarve, Portugal
389 sq.m 5 4
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
House for 3 500 000 euro in Algarve, Portugal
3 500 000 €
House in Algarve, Portugal
429 sq.m 5 4
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
House for 3 745 000 euro in Algarve, Portugal
3 745 000 €
House in Algarve, Portugal
455 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 956 100 euro in Algarve, Portugal
956 100 €
Flat in Algarve, Portugal
151 sq.m 3 2
Residence
The development consists of 76 apartments, 31 non-tourist villas, 350 tourist units and the 5-star hotel with 76 addition, it is complemented by all services and infrastructures such as golf courses, outdoor activities, restaurants and bars, conference and events center, spa, outdoor and indoor experiences, sports facilities, programs and...
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
House for 1 260 000 euro in Algarve, Portugal
1 260 000 €
House in Algarve, Portugal
430 sq.m 13 12
Residence
Excellent detached villa, ideal to monetize, inserted in a plot with 1425m2, located in a quiet area of Albufeira and within walking distance of several beaches. The villa has been completely renovated and is divided into 3 individual apartments, a T3, a T1+1, a T1 and eight bedrooms all en villa also offers a pleasant leisure area that is next...
Mercury Group
Apartment for 430 000 euro in Portimao, Portugal
430 000 €
Apartment in Portimao, Portugal
100 sq.m 3 2 2
Beautiful Duplex ( Top floor in 2 floors) penthouse apartment with 2 good size bedrooms with A/ C, office lounge area, 2 bathrooms, good storages, 2 west facing balconies with open sea views, comfortable L-shape living room / dining room with A / C and fully equipped, well designed kitchen in very good condition. Private parking space in the...
Habita International Estates Ltd

Source: Bloomberg
Photo by Humphrey Muleba on Unsplash

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