Algarve Property Market – Spring Update
In our Spring Update we review market data from the start of 2025 and outline why there are still significant opportunities for high-net-worth individuals and investors in the most exclusive region of the Algarve. The property market in the Algarve continues to grow at twice the pace compared to the rest of Europe and consistently outperforms most areas within North America.
Market dynamics and insights
In the first few months of 2025, demand for luxury property in the Algarve maintained its strong performance with sales increasing by 10% year-over-year. While many other markets were impacted by global market volatility and external geopolitical tensions, the real estate market in the Algarve remained robust – surpassing expectations and once again highlighting the region’s year-round appeal.
Portugal has an established reputation as one of the safest countries in the world, with excellent national and international schools and one of the best healthcare systems in Europe. These attributes continue to attract buyers from around the world – with the Algarve remaining a popular choice for British (45%), Irish (18%) and Portuguese buyers (13%).
Increased demand from American investors
The Algarve is increasingly popular with American investors. Portugal was voted as the second most popular destination for American travellers in 2025 (United States Tour Operations Association). Airlines are starting to adapt their flight schedules to meet this new demand. United Airlines launched their first direct transatlantic route from New York to Faro on Saturday May 17th – a historic moment which opens up Portugal’s southernmost region to even more potential investors. Approximately 200,000 US citizens visited the Algarve in 2024, an increase of 10.50% from 2023 (Portugal Resident data, 2025).
World-class facilities on your doorstep
There are many reasons why American investors and affluent individuals are deciding to move abroad and choose areas such as Quinta do Lago and Vale do Lobo as their home. The year-round community feel within each area is complemented by an impressive range of golf courses, beautiful beaches, the Ria Formosa Natural Park, Michelin Star restaurants, shopping, family-friendly activities and world-class sports facilities such as The Campus.
Opportunities for investors in 2025 and beyond
2025 remains on course to be another record-breaking year for both the property market and tourism in the Algarve, with prices forecasted to rise by 19.1% (Quinta do Lago) and 18.5% (Vale do Lobo) respectively. This performance is significantly higher than the Portuguese property market more broadly, which is forecasting more modest growth of 5.8% (PMI Report 2024-2025) and highlights the Algarve’s long-term appeal.
Invest in the Algarve with confidence
Through our team of trusted lawyers and our strong, long-term relationships with banks, major financial institutions and the government, we uniquely have access to attractive deals to suit your personal and commercial requirements.
We save you time, negotiate the best terms and maximise your return on investment on the Investment Properties, Unique Plots and luxury properties in Rural or Coastal Algarve.
Downloading our free guide on Investment opportunities in the Algarve is a perfect way to progress your search for real estate in the area:
Download BrochureFind your dream home or investment opportunity in the Algarve with independent advice and guidance from the Full Time Property team.
Book your VIP tour of the area with Full Time Property
For those interested in experiencing the most exclusive region of the Algarve first-hand, VIP tours can be arranged to explore the luxury properties or investment opportunities in the surrounding areas. These exclusive tours provide an insight into the exceptional lifestyle offered both in Quinta do Lago and Vale do Lobo – showcasing the unique blend of sports, wellness and luxury that each area offers.
Let us know your exact requirements using the enquiry form below. Alternatively, you can contact our Managing Director, Danny Stones, directly on +44 (0) 7710 723 699 or via [email protected].