According to data collected by RE/MAX, the largest real estate agency operating in the country, from January to August, the housing segment was the most sought after, representing around 83.5% of the global demand for international investment in the Algarve.

The westernmost area of the Algarve, represented around 60% of foreign demand, compared to 40% in the easternmost municipalities, integrated in the eastern Algarve. And it was the municipality of Portimão which absorbed the largest share of investment, almost a quarter of the total.

The data relating to the first eight months of 2023 show that, by municipality, Portimão leads the ranking of foreign demand for property, recording 23.6% of the total in the region. Next are Albufeira (11.3%), Lagos (8.2%) and Silves (7.5%), municipalities located in the western Algarve. Among the eastern municipalities, there is a lot of similarity in demand: Loulé (8.9%), Faro (8.8%), Tavira (8.6%) and Olhão (6.6%).

Of the properties traded during this period, foreign citizens showed the most interest in apartments (61.9%), followed by houses (21.6%) and land (10.4%). In apartments there was greater demand for types T2 (45.8%), T3 (26.5%) and T1 (21%). Regarding houses, international investors favoured T2 houses (41.4%), followed by T3s, which accounted for 29%, and T4 houses (10.3%).

British lead the way

Among the markets that most requested the Algarve, the buying and selling market was led by British investors, with 15.7% of transactions. Brazilians represented 14.9%, French 8.4%, North Americans 7.8% and Germans 6.9%.

In terms of leasing, citizens of Brazilian and English nationality stood out with around 16.5% each, followed by Germans (10.3%), Spanish (4.6%) and North Americans (4.1%). The French, the third nationality in terms of buying and selling, occupied the 6th position in this market, recording 3.6% of total transactions.

According to Beatriz Rubio, CEO of RE/MAX Portugal “International clients increasingly choose the Algarve region to invest in real estate products. It is an expanding area that has positioned itself not only as a tourist destination, but also for the settlement of non-habitual residents.

“The housing segment stands out in the global demand for international investment in the Algarve, however there are some differences between the two main foreign nationalities. In these first eight months of the year, we noticed that Brazilian citizens represented a greater demand in the acquisition of apartments, compared to those of British nationality, and in housing the scenario is reversed, with a clear predominance of the interest of British investors.”