The latest Property Market-Index report revealed a 15% growth over the past year, driven primarily by international expats drawn to the region's mix of high-end living and scenic beauty.

This growth cements the Algarve's status as a premium destination for luxury real estate investments.

Central Algarve has seen significant property value increases, with Silves leading at 10.9%, followed by Ferragudo (9.6%) and Lagos (9.7%). Tavira, east of Faro, experienced a 9.5% boost. Meanwhile, the Golden Triangle, including Vale do Lobo, Vilamoura, and Loulé, saw more modest growth at 5.8%.

A separate 2024 report by Idealista highlighted that luxury homes in the Algarve experienced the fourth-largest global price increase, showcasing the region's resilience in a fluctuating market.

Quinta Heights, a luxury new homes development in the central Algarve, set to be completed in 2025, is one of the Algarve's standout opportunities. Located between Ferragudo and Carvoeiro, it offers contemporary design with natural beauty as well as amazing facilities.

It features a yoga studio, gym, rooftop bar, a unique observatory, paddle courts, rooftop bar, spa, and pools, offering more than just a residence—it's an experience. With two-bedroom apartments from €744,000 for 93 m², and three-bedroom apartments starting at €1,116,000 for 121 m², Quinta Heights offers exceptional value. There are also 1-bedroom apartments that start at €479,000, up to 4-bedroom penthouses at €1,490,000.

At around €8,000 per square metre, it is competitively priced compared to other luxury developments, particularly in the Golden Triangle, where prices can be much higher, as much as 50 to 100 percent more for comparable.

Quinta Heights' prime Ferragudo location is a key attraction to investors and buyers. With breathtaking views of the Atlantic Ocean and Monchique Mountains, the development encapsulates the Algarve's natural allure. “The appeal of Quinta Heights is not just in its luxury offerings but also in its Ferragudo location,” says Amanda Collison at Property Market-Index. “It combines contemporary living with the authentic charm of Central Algarve, complemented by amazing facilities.”

Credits: Supplied Image; Author: Client;

In Vilamoura, just a short drive from the central Algarve, The Creek, another luxury development slated for completion in 2025, offers larger three-bedroom apartments at 143 m², with prices starting at €2,700,000. This translates to €18,881 per square metre, making The Creek one of the Algarve's most expensive new homes—significantly more than Quinta Heights with similar amenities and specifications.

Despite the higher cost, The Creek remains desirable as demand across the Algarve is strong and also near golf courses and abundant amenities, including a sauna, gym, and swimming pool. “Vilamoura has always been a top choice for luxury buyers, and The Creek takes that up a notch with its expansive offerings, but this comes at a high premium € per square metre compared with the central Algarve,” notes Amanda Collison.

For buyers seeking a balance between luxury and value, The Palms, also in Ferragudo, completed in 2016, remains a strong option. Offering three-bedroom apartments at €2,200,000 for 181.7 m², or €12,154 per square metre, The Palms blends modern design with high-quality finishes. Its continued demand stems from its desirable location and premium build quality.

Similarly, Lumare, also in Vilamoura, expected to be completed in 2027, offers three-bedroom apartments at €2,200,000, or €13,664 per square metre. Though Lumare has fewer on-site amenities than The Creek, its luxurious design and proximity to key attractions like Vilamoura Marina and Faro Airport ensure it retains strong market value.

W Residences in Albufeira, completed in 2022, offers some two-bedroom apartments still priced at €1,450,000 for 82 m² or €17,683 per square metre. This is nearly double the price compared to Quinta Heights for similar specifications, contemporary design, and facilities.

W Residences includes a spa, multiple restaurants, and 24-hour concierge services managed by Marriott, offering a high-end lifestyle.

The Algarve’s luxury property market caters to diverse tastes and budgets, with each development offering something unique.

According to Steve Philp, a spokesperson for Portugal Pathways, a platform supporting affluent expats in Portugal, “The shift towards Central Algarve is becoming increasingly noticeable. While the Golden Triangle remains attractive, many buyers are now gravitating towards developments in areas like Ferragudo, where they can experience authentic Portuguese culture alongside luxury living at better value.”

Portugal Pathways is currently offering real estate investors and affluent buyers the opportunity to talk to one of our experts in the luxury real estate market in the Algarve, to better understand the locations and the relative benefits and options available. Arrange a call now!

Portugal's property market has seen year-on-year value increases nearly double the growth rate observed in Europe, the UK, and North America. This performance solidifies Portugal’s status as a top relocation destination for wealthy expats, as highlighted in the 2024 ‘Wealthy Expats in Portugal Survey Report.’