Expected increase in residential tourism investment

After an exceptional 2017 where sales in residential tourism have risen by 43%, the expectations for buying resort homes are of high value. According to the "Resorts Market Sentiment Survey" the sale of residential tourism is expected to appreciate 7.1%, in 2018.

The market's expectations are mainly due to the fact that demand continues to surpass supply largely in a lot of the areas. In addition, the British Pound exchange rate recovery still heavily influences the British buyers on their decisions.

At present in the Algarve, the potential buyers are multinational with Swedes at almost 30% (29.7%) and the French at 18% (17.6%). British interest is still moving along at a steady (20%) 19.9% even with the uncertainty of Brexit, says Paul Cotterell, Sales Director at Casas do Barlavento.

In the national context, Germany, Ireland, China, the Middle East and North America accounted for 25% of real estate purchases between 2016 and 2017. And, in 2017 other nationalities came along such as Brazilian and Italian.

Paul Cotterell states that "interest in this type of property is due to the ease of “turn the key” and walk away. In addition, the owners have access to a variety of in-house facilities and above all, the location is usually within walking distance of the beaches and all amenities."

Regarding geographical dispersion, there is a precise concentration of supply in the Algarve (80% of the national total) with the Western Algarve gaining the share of developments by 45% (250 out of 727 touristic developments in Portugal). With this in mind, contact Casas do Barlavento to check in which resort you will find your dream home.  

¹ Survey developed by Confidencial Imobiliário in partnership with APR - Associação Portuguesa de Resorts.