As we get to half of the year, we know we owe all our clients who have entrusted us with their properties, a report on the market.
After 3 years market byCovid-19 pandemic, in which the real estate market remained resilient, another challenge presented itself – the conflit between Ukrania and Russia that now lasts for more than one year. - The past few years have really been very atypical with Engel & Volkers reaching the best results ever worldwilde with more than 1,262 billion EUR in commissions.
Our shop in Lagos was awarded for being one of the shops in Portugal with the highest Turnover with an average selling price of €560,000,00. The cultural authenticity of the Western Algarve and its touristic offer continues to be the main drivers for attracting foreign buyers to the region.
Base on the data collected from INE (national statistics institute) in 2022 were sold in Lagos council 1188 properties. Aljezur and Vila do Bispo registered 192 and 204 transactions. The increase in inflation and Interest rates during 2022 slowed down the demand for properties, not only in Lagos, Portugal but all over the world.
International buyers represent in Portugal around 48% of total home buyers. At our shop, specialized in the premium sector, the number of international buyers is even higher, representing 95% of the buyers with German, Swiss, Austrian, and British leading the interest in the acquisition of properties, although we have been noticing recently and increase of interest from the North Americans. The percentage of our clients that use bank credit is relatively small, not exceeding 6%.
In the first quarter of 2023, there were around 2300 properties for sale (new and used), a decrease of 39% compared with the offer observed in 2022.
The average selling time (around 6 months) of our shop in Lagos is significative lower than the general average in Lagos council which is around 25 months (according with INE) . The longer time it takes to sale in Lagos when compared with the rest of the Algarve is maybe associated with the appreciation of the properties in recent years.
The pandemic, the conflict in Ukrania, the increase of the interest rates and the decrease of the purchasing power of families seems not to affect theresilience of the market in Lagos, Aljezur or Vila do Bispo. Property prices increased 47% since 2019 with an increase of 19% in 2022. However, according with INE there is a difference over 20% between the average selling price and the average asking price which can contribute for some different interpretations when it comes to accurate the “real” market value of a property.
We hope this Report has been helpful and of interest. Your feedback will be most welcome.
The success story of Engel & Volkers began more than four decades ago with the vision of providing world-class real estate experiences. Today there are 946 shops spread across 3 continents within 33 countries and 16.614 real estate consultants.
Our brand has strict training standards providing our team of consultants the highest level of professional competence . We continually analyze the real estate market by compiling the information gathered in our "market reports", allowing our team to better support sellers and buyers with theirs real estate investments. The brand offers a diverse range of innovative tools and digital services for effective property brokerage.
Should you wish to make an appointment to discuss in detail the selling process of your property please do not hesitate to contact me.
Director, Engel & Volkers Lagos
Sources: Calculation and data analysis ImoEconometrics, INE and Ministry of Justice
Monday to Saturday 09:30 to 18:30
