Resort real estate boom – The Portugal News

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The number of in-station sales increased by 70% in 2021 compared to 2020 and already exceeds 2019 activity by 30%, with prices also experiencing strong appreciation.

These are the most recent findings of the semi-annual “Portuguese Resorts Market Report”, produced by Confidencial Imobiliário in partnership with the Portuguese Association of Residential Tourism and Resorts (APR), noting that in terms of price it was one of the most significant increases since 2016, only surpassed by the 18.3% growth recorded at the end of 2018 when the Brexit deal was approved.

“For a year and a half, the prices of this type of real estate have shown signs of recovery and even during the confinement period (1st half of 2021) they have increased (+8.6% over one year)”, underlines the published report. by the APR.

The 2nd half of 2021 marked the third consecutive semester with positive channel changes, recording the highest half-year increase ever: 13%.

Along with the strong appreciation, resort sales also grew strongly, growing 70% over 2020 and outpacing 2019 activity by 30%.

Algarve resorts

In 2021, the average sale price of resort accommodation reached €4,205/m2, reaching its highest expression in the Albufeira/Loulé area, with sales reaching an average of €4,848/m2.

For Pedro Fontainhas, executive director of the Portuguese Association of Residential Tourism and Resorts, these results “confirm the growing trend, which the pandemic has accentuated, to seek accommodation in resorts in Portugal with outdoor space, privacy , security, connectivity, support services and proximity to nature.This trend is visible through the growing demand from customers of the most diverse nationalities, including the Portuguese”.

Ricardo Guimarães, director of Confidencial Imobiliário, said that the resort market “is another of the sectors with a strong performance in 2021, showing that the national residential market remains competitive and attractive in a transversal way, emerging strengthened from the pandemic crisis” .

Fewer Britons

The second year of the pandemic has also brought significant fluctuations in the structure of international demand for resorts. Buyers from the United Kingdom remain the main source of demand in Albufeira-Loulé, generating 42% of purchases from foreigners in 2021, but losing expression compared to previous years when their share exceeded 50%. This loss of share is part of a context of more dynamic activity in other European countries, with the accent on the Netherlands (12% of purchases by foreigners in this location), Ireland (9%), Germany, France and Switzerland (shares of 5% to 6%).

higher prices

In 2021, resort-integrated housing available for sale in the country had an average value of €4,418/m2, reaching €8,374/m2 at the higher end of the market. In the main seaside destination, said Albufeira-Loulé, where 43% of homes for sale are concentrated, supply averaged €5,151/m2 and in the luxury segment it reached €10,064/m2, a level never reached. before seen in the station market.

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