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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 280 000 euro in Albufeira, Portugal
280 000 €
Apartment in Albufeira, Portugal
110 sq.m 3 2 2
What are tourists looking for when planning their holidays in the Algarve? Proximity to the beach, to infrastructure, preferably an ocean view, and they also know about the English street known as Streep or New Town - a street of bars, restaurants, boutiques, all kinds of night entertainment and attractions! What place could be more...
PORTUGALITY
Villa for 1 100 000 euro in Praia da Luz, Portugal
1 100 000 €
Villa in Praia da Luz, Portugal
1580 sq.m 4 4
Residence
A modern villa with sea views is located on the coast in Praia da Luz.The villa consists of 4 bedrooms, a living room and a fully equipped kitchen. The villa includes a heated swimming pool.There is a garden and a garage on site.
Knight Frank
Villa for 1 150 000 euro in Algarve, Portugal
1 150 000 €
Villa in Algarve, Portugal
3800 sq.m 5 5
Residence
The modern villa is located in the Algarve, next to the golf club.The villa includes 5 bedrooms, 2 living rooms, a pantry and a kitchen. The villa has a swimming pool, garage and garden.
Knight Frank
Villa for 1 250 000 euro in Lagos, Portugal
1 250 000 €
Villa in Lagos, Portugal
10320 sq.m 5 4
Residence
Four-storey villa with sea views is located on the coast of Lagos, in a safe and quiet area, a 5-minute drive from two golf clubs.The villa includes a kitchen, dining room, 4 living rooms and 5 bedrooms.There is a luxurious garden on the territory, there is a swimming pool, measuring 11 x 5 m, a Jacuzzi and Parking. 
Knight Frank
Villa for 1 950 000 euro in Praia da Luz, Portugal
1 950 000 €
Villa in Praia da Luz, Portugal
2730 sq.m 4 3
Residence
The villa is located on the coast in Praia da Luz. The villa includes 4 bedrooms, 3 bathrooms, living room, kitchen, terrace, garage. The villa offers a magnificent view of the sea. There is a swimming pool and a recreation area on the plot.
Knight Frank
Villa for 2 300 000 euro in Lagos, Portugal
2 300 000 €
Villa in Lagos, Portugal
1120 sq.m 12 8 6
Residence
The villa is located on the coast of Praia Maya in the city of Lagos. The villa consists of separate connected apartments. On the ground floor there is a main area with three bedrooms and a three-bedroom apartment for staff. The windows overlook the sea. On the ground floor there is a two-bedroom guest apartment. The house includes an indoor...
Knight Frank
Villa for 2 250 000 euro in Lagos, Portugal
2 250 000 €
Villa in Lagos, Portugal
556 sq.m 8 6 6
Residence
A spacious two-storey villa with sea views is located in the city of Lagos.The villa includes 6 bedrooms, 6 bathrooms, a spacious open-plan living room combined with a dining room, a fully equipped kitchen, a terrace, a garage.On the plot there is a swimming pool, a tennis court and a garden. 
Knight Frank
Townhouse for 615 000 euro in Albufeira, Portugal
615 000 €
Townhouse in Albufeira, Portugal
153 sq.m 4 3 3
Exclusive villas are located in a private condominium located in the center of Albufeira, 2 km from the beaches and close to all the necessary infrastructure – schools, kindergartens, city indoor swimming pool, family park with playgrounds, shops, restaurants, cafes, medical facilities, etc. etc. Modern style two-story house, spacious and...
PORTUGALITY
Flat for 339 000 euro in Silves, Portugal
339 000 €
Flat in Silves, Portugal
86 sq.m 3 2 2
Built in a unique style making the most of space & light both inside & out, the ground floor of this duplex townhouse is both East & West facing, with a long open-plan space which includes a dining area at one end & lounge at the other with the fully fitted & equipped, Hotpoint Ariston, kitchen, stairs & guest W.C in the middle. The triple...
Habita International Estates Ltd
Villa for 3 697 000 euro in Vilamoura, Portugal
3 697 000 €
Villa in Vilamoura, Portugal
458 sq.m 6 5 7
Online Viewing
Villa composed by a entrance hall with double-height, wide living room, with access to a covered terrace with dining area and leisure area, dining room, fully equipped kitchen, two bedrooms in suite, one of them a master suite and social toilet. On the first floor, the Villa has 3 bedrooms in suite, one of them being a second master suite, all...
PORTUGALITY
House for 475 000 euro in Algarve, Portugal
475 000 €
House in Algarve, Portugal
112 sq.m 4 2 3
Residence Credit
Townhouse with 2 bedrooms and fantastic views of the Arade River. Located in Lagoa, Algarve. It consists of three floors. Ground floor: kitchen (6 m2), living room (31 m2), bathroom and suite with bathroom (23 m2). On the ground floor there is a suite with a bathroom (20 m2), a dressing room (6 m2) and a balcony (36 m2). The second floor...
Amber Star Real Estate
House for 980 000 euro in Albufeira, Portugal
980 000 €
House in Albufeira, Portugal
195 sq.m 5 4 4
Residence Remote Transaction Credit
4 bedroom house located in Albufeira, near the beach. The living area is 195 sq.m. and is distributed over two floors of the building. This is a modern house with authentic Algarvian style details. The first floor consists of: - living room combined with dining room (44m2);- large kitchen (14 m2);- two bathrooms;- two large bedrooms with fitted...
Amber Star Real Estate
Apartment for 680 000 euro in Lagos, Portugal
680 000 €
Apartment in Lagos, Portugal
97 sq.m 3 1 2
Residence Online Viewing Remote Transaction Credit
The duplex apartment is located in a complex with a unique view of the Bay of Lagos, Ria de Alvor and Meia Praia. The resort includes a beautiful 27-hole golf course designed by Robert Trent Jones II, a 5-star luxury hotel, a SPA, a club, a beach club, a training field with two training grounds, a restaurant with panoramic views, sports and...
AWAY REALTY
Apartment for 480 000 euro in Algarve, Portugal
480 000 €
Apartment in Algarve, Portugal
152 sq.m 3 2 2
Online Viewing Remote Transaction
The complex is located on one of the highest points of Albufeira, which allows you to enjoy 360-degree views of the city, ocean and mountains. Beautiful sunrises and sunsets in a quiet and picturesque area, and at the same time a 5-minute drive to all the necessary infrastructure: restaurants, cafes, various beaches, shopping, shops and...
PORTUGALITY
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 Real Estate
Flat for 259 750 euro in Carvoeiro, Portugal
259 750 €
Flat in Carvoeiro, Portugal
94 sq.m 2 1 1
If you love to play golf, this furnished, air conditioned, apartment is perfect for you. Set in Pestana Gramacho Residences, close to 2 of the most prestigious golf courses in the Algarve (Gramacho & Vale de Pinta). This duplex apartment spans 2 floors & has a large, spacious living/dining area with balcony, fully fitted & equipped kitchen,...
Habita International Estates Ltd
House for 1 295 000 euro in Carvoeiro, Portugal
1 295 000 €
House in Carvoeiro, Portugal
250 sq.m 7 4 3
Residence
Traditional meets modern in this stunning, furnished farmhouse, making use of natural products such as wood & stone. Comprising of 4 bedrooms each with fitted wardrobes & 2 with en-suite facilities, lounge with wood burning fire, dining room, fully fitted & equipped kitchen, family bathroom & loft with ample storage space. Also includes a...
Habita International Estates Ltd
Apartment for 182 500 euro in Portimao, Portugal
182 500 €
Apartment in Portimao, Portugal
56 sq.m 2 1 1
This apartment is in the perfect location if your goal in life is to relax in tranquil, palm tree lined gardens wilst listening to the sounds of the ocean in the distance & looking towards the stunning Portimão marina & river Arade. The Hotel Vista Marina has several spaces for relaxation, outdoor pool & jacuzzi, indoor pool, gym & spa,...
Habita International Estates Ltd
Villa for 4 500 000 euro in Albufeira, Portugal
4 500 000 €
Villa in Albufeira, Portugal
306 sq.m 5 4 4
Residence Online Viewing Remote Transaction Credit
4-Bedroom Villa, with 306sqm of floor area, with a patio with 180sqm in Albufeira! Deluxe Villas Added to the resort's diverse real estate offer are luxurious villas spread across the land, hidden among tall pine trees and beautiful gardens, inspired by traditional Portuguese architecture with Moorish influences. There are additional...
Amber Star Real Estate
Apartment for 220 000 euro in Portimao, Portugal
220 000 €
Apartment in Portimao, Portugal
63 sq.m 2 1 1
Location, Location, Location ! From the balcony of this fabulous, air conditioned apartment you can see the Atlantic Ocean glistening in the sunlight. In a fabulous location, this apartment has everything you need to enjoy the Algarvian lifestyle. With clean lines & large spaces, this 1 bedroom apartment has a fully fitted & equipped open...
Habita International Estates Ltd

Source: Bloomberg
Photo by Humphrey Muleba on Unsplash

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