Market Overview: Confidence Continues to Build

The Algarve’s property market continues to show remarkable resilience and dynamism as we move further into 2025. According to CBRE’s Portugal Real Estate Market Outlook 2025, national real estate investment is expected to grow by 8% year-on-year, potentially surpassing €2.5 billion. The Algarve, long regarded as a jewel in Portugal’s property landscape, stands out as a prime beneficiary of this momentum.

Retail and hospitality sectors are projected to remain top investment categories, driven by consistent tourism, stable governance, and an increasingly international buyer base. This confidence is reflected across the Algarve, where lifestyle-driven demand and high-quality developments are creating a thriving and competitive market.

Spotlight on Lagos: Exceptional Growth and Investment Appeal

Among Algarve’s many attractive locations, Lagos continues to shine. Latest figures from Confidencial Imobiliário show an 18.6% increase in property prices in Lagos in Q4 2024 compared to the same quarter the previous year, well ahead of the Algarve’s average growth of 13.8%.

This growth is underpinned by a careful balance of infrastructure development and natural preservation, which has positioned Lagos as one of the most desirable places to live and invest in Portugal. Our upcoming flagship projects, will be purposefully designed to match this elevated demand, offering sophisticated, sustainable living with proximity to the region’s finest amenities.

Transatlantic Interest: The Rise of American Buyers

Another powerful trend reshaping the Algarve market is the surge in American homeownership. Since 2019, the number of U.S. buyers in Portugal has tripled, with the Algarve being a standout destination. With the recent addition of direct United Airlines flights from Newark/New York to Faro, accessibility has never been easier.

American buyers are drawn to the Algarve for its unmatched quality of life, favorable climate, tax benefits, and affordability compared to U.S. coastal markets. In response, Boa Senda Developments is offering an expanded portfolio of turnkey residences, designed with the needs of international buyers in mind, including concierge relocation services, multilingual support, and property management solutions.

Looking Ahead: A Promising Horizon

The Algarve enters the second quarter of 2025 with strong fundamentals, sustained international interest, and increasing market sophistication. With a lifestyle offering that’s second to none and a development pipeline focused on quality and longevity, the region is set to remain one of Europe’s most attractive property investment destinations.

At Boa Senda Developments, we remain committed to delivering distinctive, high-quality homes that reflect the Algarve’s unique spirit, crafted for those who seek both lifestyle and legacy.