What Can Expats and Investors Buy in Algarve’s Luxury Property Market?

The Algarve, Portugal's stunning southern region, continues to attract high-end real estate investors in 2024, showcasing impressive growth in the luxury property market. This appeal has been driven mainly by international buyers, particularly affluent expats looking for both investment opportunities and second homes in this idyllic region.
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According to the latest data from the Property Market-Index, the Algarve luxury real estate market grew by an impressive 15% over the past year. Certain areas within the region have seen particularly robust growth. For example, in Central Algarve, the picturesque town of Silves recorded a 10.9% increase in property prices, while Ferragudo experienced a 9.6% rise.

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Other notable areas, such as Lagos in Western Algarve, saw a 9.7% increase, and Tavira, located east of Faro, recorded a 9.5% rise. By contrast, the well-known "Golden Triangle" of Vale do Lobo, Vilamoura, and Loule saw a more modest 5.8% increase in property values during the summer of 2024, with Albufeira following a similar trend.
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Additionally, Idealista’s 2024 report ranked the Algarve's luxury homes as experiencing the fourth largest price increase globally. Despite worldwide market fluctuations, the Algarve has demonstrated resilience, maintaining its allure for luxury real estate buyers.

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From sprawling estates to sleek modern apartments, the Algarve's luxury market offers diverse options catering to different tastes and budgets. For savvy investors and those with a keen eye on luxury real estate, what can your money buy in Algarve's luxury property market?

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One standout development in the Algarve's luxury property scene is Quinta Heights, a high-end project set for completion in 2026. Located between Ferragudo and Carvoeiro, this development offers a range of amenities, including a spa, yoga studio, gym, on-site restaurant, rooftop bar, sports facilities, landscaped gardens, and even a private observatory.

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Quinta Heights offers exceptional value for money, with a lower price per square meter compared to other high-end developments in the Algarve, particularly those within the Golden Triangle. The development provides stunning views of both the Atlantic Ocean and the Monchique Mountains, enhancing its appeal for buyers seeking luxury at more competitive prices.

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Spacious three-bedroom apartments start at 121 square meters, priced from €1,116,000, while two-bedroom apartments, ranging from 93 square meters, are available from €744,000, equating to €8,000 per square meter.

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In comparison, The Palms, a luxurious property within the Vila Castelo Parque development, completed in 2016, offers three-bedroom apartments with significantly larger floor plans of 181.7 square meters.

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However, the price per square meter is much higher, with apartments listed at €2,200,000, equating to €12,154 per square meter. The Palms' premium pricing reflects its high-quality construction and desirable location.

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Another prominent development in the Algarve is The Creek in Vilamoura, set to be completed in 2025. It offers larger three-bedroom apartments spanning 143 square meters, but at a steep price of €2,700,000, translating to €18,881 per square meter, making it one of the most expensive developments in the region. The Creek's prime location, surrounded by golf courses, contributes to its higher cost, along with extensive amenities, including a sauna, gym, restaurants, and swimming pool.

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Lumare, also located in Vilamoura, is another luxury project currently under development, expected to be completed in 2027. It offers three-bedroom apartments measuring 161.3 square meters, priced at €2,200,000, or €13,664 per square meter. While Lumare offers fewer on-site amenities than either Quinta Heights or The Creek, its luxurious design and proximity to the Vilamoura Marina and Faro Airport maintain its high market value.

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Meanwhile, W Residences in Albufeira, completed in 2022, provides an alternative high-end living option with various apartment sizes. Its two-bedroom apartments, priced at €1,450,000 for 82 square meters, come with a cost per square meter of €17,683, nearly double the price of similar units at Quinta Heights. Managed by the Marriott Group, W Residences offers a comprehensive suite of amenities, including a spa, restaurants, a fitness centre, and 24-hour concierge services, justifying its higher pricing.

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With its diverse range of luxury properties, the Algarve remains an attractive destination for both investors and affluent expats. Quinta Heights stands out as one of the best-value developments, especially compared to the higher cost per square meter in other areas such as The Creek or W Residences.

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Steve Philp, a spokesperson for Portugal Pathways, a platform that supports affluent expats relocating or investing in Portugal, commented on the trend: "While the Golden Triangle continues to be a desirable area, we are seeing more international buyers gravitate toward new developments in the Central Algarve. This shift is largely due to the more affordable prices, stunning locations, and the sense of Portuguese authenticity that these areas offer."

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In 2024, Portugal's real estate market continues to outperform global markets, with capital growth nearly double that seen in regions like Europe, the UK, and North America. According to the latest "Wealthy Expats in Portugal Survey Report," Portugal is increasingly becoming the world's top relocation destination, reinforcing the Algarve's position as a premier choice for luxury property buyers.

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To arrange a call with one of our Portugal Pathways real estate experts and find out more about new developments, contact us today.

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