Less than 20% of home investors in the Algarve region are Portuguese. The remaining 80% of buyers are foreign citizens, namely British nationals, according to Engel & Völkers.
German multinational specialising in luxury real estate reveals in a study the main characteristics of the group of investors in the Algarve region. Around 90% of buyers who invest in the Algarve are buying second homes.
British nationality is predominant, but other nationalities are also interested in the region, such as German, French, Swedish, Swiss and Dutch. The study also shows that the number of US investors is also increasing significantly.
The majority of buyers are under 55 years old, have an active professional life, have children and, as a rule, do not want to live more than ten minutes away by car from the nearest main city. Ideally they are looking for properties with sea views.
In the Algarve's luxury segment, "prices per square metre, on average, vary between four thousand and eight thousand euros, which are very attractive to foreign investment. A premium two-bedroom flat in Lagos costs between 400,000 and 550,000 euros. A three-bedroom villa here costs between one and a half million and two million euros. In Albufeira, exclusive villas cost around 2 million euros, while villas in Vilamoura are priced at around 3 million euros," reads the note from the German company.