Algarve Resort Sales 2019 overview | Kleya - Relocation, Retirement, Investment & Moving to Portugal
Algarve Resort Sales 2019 overview. British have increased their share on the market.

We can’t anticipate how the market will respond in the current scenario of emergency, that was activated to prevent the spread of the COVID 19 virus. However, we can look at the most recent data and identify what the main trends were. In this article, we focus on the Resort Sales in 2019 where, despite Brexit, UK buyers have increased their share. Will we see the same trend in 2020 despite COVID 19? 


In 2019, sales of house integrated on a resort showed a greater balance in terms of geographic segmentation. The Albufeira-Loulé axis continues to dominate sales, with a 39% share but has lost its representativeness again, compared to 45% in 2018 and 67% in 2017. Barlavento (west side of Algarve from the Atlantic Ocean to Albufeira) took the opposite way, improving from a share of 12% in 2017 to 25% in 2018 and again to 31% in 2019, now levelling with the Atlantic Coast. With an important place of 29% in resort sales in 2019, the Atlantic Coast maintained its share in sales compared to 2018, not confirming the increase observed between 2017 and 2018 (from 21% to 30%). 


As for the average selling price, it reached 4,147 € / m2 in aggregate terms, showing a higher value on the Albufeira-Loulé axis, with 5,520 € / m2. In the other two regions with sales recorded in resorts, the average price levels are well below, reaching 2,908 € / m2 in the Barlavento and 3,710 € / m2 in the Atlantic Coast. In the highest market segment (95th percentile of prices), the premium for the central axis of the Algarve is even more evident, with transactions at € 11,679 / m2 in 2019, compared to € 3,919 / m2 in Barlavento and € 5,921 / m2 on the Atlantic Coast.  





As for the dynamics of international investment in the resort market in 2019, it is interesting to note that the European market, despite remaining dominant, lost share in the Algarve, however, there was no decrease in the British market. On the contrary. Despite the turbulent Brexit process, UK buyers have even increased their share of international purchases both on the Albufeira-Loulé and Barlavento axes. 

In the first case, they increased their predominance from 51% to 54% of sales to foreigners, although with a lower average investment ticket. The value per property went from 1.83 million euros in 2018 to 1.36 million euros in 2019. In practice, it means that the British are buying smaller houses since the unit value of the acquired house increased from € 5,058 / m2 to € 5,222 / m2. 


In Barlavento, the share went from 25% to 29%. The average investment ticket also declined, albeit slightly (from 455 thousand euros to 439.7 thousand euros), even suggesting the purchase of smaller houses, since the average sale value evolved positively from 2,564 € / m2 to 2,883 € / m2. 

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