The Portuguese real estate market is experiencing a growing demand for resort residences
Ombria Resort, luxury sustainable development in the Algarve; owned by the Finnish group Pontos; has received over 1,500 buyer inquiries since January of this year. A third of applications come from UK residents wishing to take advantage of Portugal’s Golden Visa program and investment opportunities. The figures reflect the new report on the Portuguese resort market from Confidencial Imobiliário, a leading real estate market information company, which indicates that buyer demands; in particular of British nationals; began to resume in the second half of 2021.
Published in March 2022, the report reveals that the resort property market in Portugal has seen a 70% increase in sales, from around 240 property transactions in 2020 to almost 400 sales in 2021. With a market share of 51 %, the Albufeira-Loulé region has thus seen the majority of transactions with British investors making it one of the largest demographic groups of international buyers at 42%.
João Richard Costa, Sales and Marketing Director at Ombria Resort, said: “We are seeing continued growth in the number of UK nationals willing to invest in a Golden Visa-eligible property to be able to spend as much time in Portugal, and the Schengen area, as they wish without the limit of 90/180 days since Brexit. We expect Portugal’s recent decision to fast-track UK travelers through its airports to be another contributing factor that will boost demand from UK house hunters.
Alex Koch de Gooreynd, partner at Knight Frank, confirms the interest from UK buyers: “With a long love affair with the Algarve, UK buyers continue to lead the way. Driven initially by the Golden Visa and the NHR tax regime, these buyers are increasingly tempted by the low cost of living and wonderful quality of life. The only big change we’ve seen is the increased demand for primary and co-primary residences rather than traditional vacation buying. UK shoppers are now embracing the new post-Covid normal that allows people to work from anywhere.
Costa adds: “Since the launch of our sales in 2020, purchases related to Golden Visa have grown from just two transactions completed in 2020 to seven sales in 2021. We expect these numbers to increase significantly this year, as we have seen an increase UK inquiries by over 40% since the start of 2022.”
Ombria Resort is located in a peaceful rural setting, 2km from one of the largest nature reserves in the Algarve and 7km north of the market town of Loulé, with Faro airport and beaches just 25 minutes away by car.
“The recent increase in sales inquiries has led to the sale of 70% of our Viceroy Residences. As of January 2022, only inland or tourist properties are eligible for the Golden Visa program. Viceroy Residences fall into these categories and have therefore seen increasing demand from UK and international buyers,” concludes Costa.