Second homes account for 60% of transactions in Algarve's premium districts

In Quinta do Lago and Vale do Lobo, foreign buyers—accounting for 80% of purchasers—pay in excess of €13,000 per square metre and typically settle in cash, eschewing mortgages. Villas with pools, apartments overlooking golf courses and sea views represent the standard offering for those seeking a second home on the Portuguese coast.

Vilamoura has seen prices surge 106% year-on-year. In Albufeira and Carvoeiro, the picture is even more pronounced: 43% of purchases are second homes, 36% are investment acquisitions for rental purposes, and only 21% represent primary residences for Portuguese nationals.

Yet Algarve no longer holds a monopoly. Comporta has grown 12.3% owing to its proximity to Lisbon and a shortage of supply. On the country's western coast, second homes account for 40% of the market, with American, French and German buyers active at an average price of €3,100 per square metre.

Source: Portugal News