The demand for housing in Portugal continues to grow and there are areas that, for various reasons, arouse more interest from investors – both national and foreign. This is the case of tourist destinations, such as Lisbon, Comporta-Melides and the Algarve, which stand out as the most sought-after regions for investment, according to the Market Report released by Engel & Völkers (E&V).
“The city of Lisbon is now a consolidated tourist destination. In addition to its attractions and lifestyle, it benefits from an internationally competitive infrastructure of services and equipment. Demand should remain stable and high in 2023, boosted by tourism and international buyers”, says Vanessa Moreira, Director of E&V Lisboa, quoted in a statement.
According to the study, the demand for housing in the municipality of Lisbon stabilized at 8,000 transactions in 2022. Furthermore, the “increase in inflation and interest rates during 2022 did not affect the dynamics of demand”, even observing a slight increase in transactions. On average, international buyers account for around 13% of total housing purchases in the municipality of Lisbon, with a greater presence in the parishes of Santo António, Arroios, Estrela, Misericórdia and Avenidas Novas.
In addition, housing prices in the municipality of Lisbon continue to rise, with an increase of 14% in 2022, justified “by the interest of national and international buyers and the reduced supply of residential products”, says E&V.
From celebrities to royalty
According to E&V, the region of Comporta-Melides “has been gaining notoriety for having begun to attract celebrities, politicians and even royalty to its beaches”. In recent years, new resorts and residential projects have emerged with good infrastructure and support equipment, as well as golf courses, marinas, hiking trails and bike paths, which “make the region very attractive for investment”.
The demand for housing increased in the parishes of Comporta (municipality of Alcácer do Sal) and Melides (municipality of Grândola), which was reflected in the number of sales. In 2022, in the regions of Alcácer do Sal and Grândola, there were 228 and 320 transactions, respectively. Resales continue to represent the vast majority of housing transactions. As for international buyers, they represent around 60% of total housing transactions, with the Germans, Swiss, British and Belgians leading housing purchases in this market.
“Housing prices also increased very significantly, by around 67% in 2022, reaching average offer values of 6,500 euros per m2 at the end of 2022”, reveals the consultant.
Algarve continues to attract investors
The Algarve is a tourist region in which “traditionally there has always been real estate investment”. In the Engel & Völkers Market Report, the highlight goes to Quinta do Lago, in the parish of Almancil. Located in the so-called “golden triangle”, together with Vale do Lobo, Vale Garrão and Almancil, Quinta do Lago benefits from a unique location in the Ria Formosa Natural Park, with its natural landscapes and beaches. In addition, it has several infrastructures to support tourism, including golf courses, luxury hotels and restaurants, as well as tennis courts, an equestrian centre and shopping areas.
Demand has been gradually increasing, reaching 526 transactions in 2021 and registering some decrease in 2022, “which should be recovered in 2023”, according to E&V. International buyers account for around 90% of total home purchases, with UK, US, German and Dutch international buyers leading the way in home purchases. As for housing prices, they have increased by 35% since 2019, with the increase in inflation in 2022 stabilizing values at 3,830 euros per m2.