Recent times have seen increasingly modern infrastructures, rising property prices, steady tourism demand and a growing number of direct flights to the Algarve from new destinations.

According to widely reported figures from the Bank of Portugal (BdP), last year the Algarve received the third largest slice of the total foreign direct investment (FDI) in Portugal, after Lisbon and Porto, and 2023 witnessed the highest recorded value of direct investment in the real estate sector, with real estate transactions making up more than half of the total FDI in Portugal.

Portugal’s tourism also had a record year last year, with over 30 million guests. Figures from the National Statistics Institute (INE) showed that while the overall number of tourists in the Algarve grew compared to pre-pandemic 2019, the average length of stays was shorter. Nonetheless, between 2019 and 2023, the Algarve consistently remained the top national tourist destination in terms of the number of overnight stays.

Credits: Supplied Image; Author: Client;

“We’re seeing a growing number of modern new developments in the Algarve, among them ‘empreendimentos turísticos’, or tourist developments. These are good options for anyone looking to buy a short-term rental investment property,” says Brian Bartlett, Director of Business Operations at Algarve-based real estate agency Ideal Homes Portugal.

He explains: “Investing in a property in an ‘empreendimento turístico’ combines demand for short-term stays with the benefits of a fully managed rental property. Some will provide options such as guaranteed returns on investment (ROI) and rental pool programmes, as well as furnished properties and great on-site amenities.

Credits: Supplied Image; Author: Client;

“Tourists consistently seek comfortable accommodations with communal facilities to enjoy, which makes this sector resilient”, he concludes.

Besides a steady flow of visitors to the region and demand for new-builds, high-end properties and second homes, another key factor behind the Algarve’s continued appeal is the growing interest in, and availability of, sustainable properties. Developers and homeowners are placing focus on properties with eco-friendly and energy-efficient features, aligning with global trends towards sustainability. This shift is particularly relevant in the Algarve, where the region’s natural assets inspire a commitment to preserving the environment.

Credits: Supplied Image; Author: Client;

These positive trends fuel optimism that interest in the Algarve property scene will remain strong throughout the rest of the year.

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