However, this is not what we are
seeing here. Demand and sales volumes are higher than ever. It makes one think
how these global trends once again are impacting us so little here in the
Perhaps it´s the
weather, the golf, the dreamy beaches and the quality of life that has
attracted so many people from all over the world to invest in this small
paradise. Or is it the fact that Portugal is considered to be one of the very
safest places to live on earth?
Perhaps it’s the
favourable tax regime or the Golden Visa scheme that has attracted so many.
There has been huge pent-up demand coming through following the lifting of
pandemic-related travel restrictions. Buyers seeking a better quality of life
and a new home away from home. Brexit might have contributed - many of our
British buyers preferred to invest their pounds in the EU and reduce their
The stats below
speak for themselves:
Year-to-date, we at
QP Savills, have agreed 72 sales, making it a record year following on from our
previous record in 2021. Total sales volume sits just shy of 200 million euros.
Year on year we
witnessed a 23% increase in enquiries.
Our resort offices
in Quinta do Lago and Vale do Lobo have agreed 47 sales consisting of 162
million euros worth of property, making our average price per unit 3,463,000
Our country office, located in Loulé, has agreed 25 sales so far consisting of 33 million euros worth of property, making our average price per unit there 1,460,000 euros.
unlike the rest of Portugal, the vast majority of our buyers are still British
and Irish which account for 71% of our total sales. They are followed by the
French and Belgians, the Germans, and then the Portuguese who tend to buy more
in the countryside.
This year total
global wealth grew by 9.8% and there were 5,200,000 new millionaires. These
High Net Worth Individuals are driving our market and seem unperturbed by the
increasing interest rates, rather choosing to place their wealth in euros and
Algarvian real estate. As with previous years, only a small percentage of our
buyers required a mortgage, the vast majority being cash buyers. Many are
digital nomads who are flocking to this sunniest region of Europe to invest in
permanent homes rather than just holiday homes.
We continue to see
an influx of younger families relocating here looking for a safe environment in
which their children can grow. International schools are struggling to cope
with the demand for places which has resulted in long waiting lists and some
schools have doubled in size to accommodate demand.
There seems to be a
strong preference for purchasing finished properties or those that need
refurbishment over plots of land to build from scratch. This is probably
because construction costs have increased considerably (official figures say
there is a 12.5% increase nationally although this figure is likely higher) and
the lengthy process of getting plans approved seems daunting for many.
Year after year
we´ve witnessed an increase in the number of valuation appointments and an
increase in properties coming to the market by around 10%. Some sellers prefer
an off-market approach so we have access to more unofficial listings than
stronger buyer interest in developments than ever before. The investment
opportunity and the quest to “get in early” to benefit from future price
uplifts are attractive. So much so that we are opening a new branch of the
QP Resorts and
Developments, Consultancy, and Sales - will be run from our already rebranded
offices located at the entrance of Vale do Lobo. Watch this space!
The Golden Visa
programme is as popular as ever with more than 11,000 people applying since its
inception in 2012. This equates to six billion euros worth of property sales.
There is talk of the government making changes to the scheme and perhaps even
ending it, so if you are interested in obtaining a Golden Visa then we would
advise moving fast. We still have some options available here on the coast so
do call one of our Special Agents for details.
The Non-Habitual Tax
regime (NHR) continues to be hugely popular with over 11,000 non-habitual tax
residents so far taking advantage of this attractive initiative for those
looking to optimise their tax planning and reside in Portugal.
A new stream of
demand is emerging with the arrival of the Americans who are coming to Portugal
with their strong US dollars. In the States, Portugal is seen as being very
trendy and perceived to have a lifestyle comparable to that of California and
Florida. They have already found Porto and Lisbon and are now beginning to
discover the Algarve. According to SEF (The Portuguese immigration office),
over 7,000 Americans are now making Portugal their permanent home. Many from
the west coast are choosing to relocate and consider the Algarve to be the
‘California of Europe’. The east coast Americans and Canadians migrate in the
winter months to our temperate climate.
We have been a Savills associate for over 25 years now and our partnership continues to grow. It not only gives us access to their global network of over 700 offices but also insight into their global research.
According to the
recent Savills Market Sentiment report, there seems to be a slowing of growth
after the post-pandemic boom. Buyer sentiment seems to be one of caution due to
the current uncertainty of the markets. It reports that an average of
two-thirds of their buyers were searching for properties in resorts, coastal,
or countryside locations, demonstrating that the search for space continues unabated.
The past year has seen global property markets benefit significantly from the
race for space and many government incentives designed to boost home sales.
This activity has increased property values worldwide.
Here at QP, we’ve
been extremely busy: we hired half a dozen more sales agents and admin staff to
be able to maintain the standards of service that continue to make us your Best
Sellers. We have big plans to expand our business and our team further as we are
confident of continued growth, and have exciting ideas to grow geographically
in key areas as well as into property management and rentals.
We are now 100%
mobile ready, we have invested in a new innovative CRM system and have moved
all our servers onto the cloud so that our Special Agents have access to all
the data at the tip of their fingers. Our clients’ data is now safer than ever,
and soon our clients will be able to access data about their property in
real-time from when we send out their property details to feedback on viewings.
We have just
launched a new marketing campaign in the USA and have meetings in LA early next
year to strengthen our American network.
QP continues to
actively cut down our carbon footprint by reducing our use of paper and progressively
phasing out physical brochures to digital ones. We have invested in a fleet of
new 100% electric vehicles so that we stay at the forefront not only of new
technologies but also of environmental sustainability.
So, once again we
here at QP have had another incredible year! As we write this on a sunny
December afternoon, we are so grateful to all our agents, admin staff, buyers,
sellers, and everyone else who have supported us over the past 25 years in
making QP what it is today, the leading real estate agents in the Algarve. We
live in paradise...still being discovered by the rest of the world. If you
don’t already live here, give us a call.
more information contact us on: Tel: (+351) 289 396 073