The paradisiacal beaches are the main attraction, but there are other reasons for the expansion of Portimão's real estate market, ranging from the mild climate and proximity to nature to the multiplicity of cultural, sports, and recreational activities. In other words, there are many beaches to soak up the sun and swim in, yes, but Portimão also has schools, hospitals, markets, supermarkets, shopping malls, pharmacies, banks, and even a city airdrome! For all this - and much more! - the real estate market in Portimão has been the target of interest from Portuguese citizens, but also (and mainly) from foreign investors who have decided to buy a house in Portugal to spend their retirement in short sleeves or to buy a vacation home in Algarve for moments of delight with family and friends.
Portimão’s Real Estate Market | The concept
Before we move on to Portimão, it is important to understand that the concept of the real estate market refers to a branch of the economy in which real estate is traded. What is real estate? They are assets that, technically, cannot be moved from one place to another without their essence being changed, such as land, buildings, and houses. So, whenever you buy, sell, or rent new or used real estate - whether for private or business purposes - you are trading in the real estate market.
Portimão’s Real Estate Market | House Prices in Portimão
Currently - and according to reviews by the real estate portal Idealista - the price of houses in Portimão is slightly higher than 2.000€ per square meter: 2.001€/m2, to be precise, as of February 2021.
Compared to January 2021, there is an evolution of 0.2%, and compared to the same period last year the evolution is much more significant: 5.3%.
In other cities, for instance Ferragudo, the price of houses is higher than 2.600€ per square meter: 2.655€/m2. Compared to January 2021, there is an evolution of 1.3%, and compared to the same period last year the evolution is also very significant: 7.7%. While in Monchique, another city where Engel & Võlkers Portimão, can assist you, the price of houses is currently 2.084€ per square meter. Compared to January 2021, there is already a considerable evolution of 15%, and compared to the same period last year the evolution is of big significance: 35.5%!
Portimão’s Real Estate Market | House prices in Algarve
With the m2 at 2.064€, the Algarve region is the second most expensive to buy a house, just after Lisbon (2.874€/m2) and before the north region (1.704€/m2).
Nobody is surprised by these higher values, which reveal the growing interest in buying permanent or vacation homes in the Algarve since the southernmost area has a mild climate, incredible beaches, beautiful natural landscapes, excellent cuisine, low crime, and, of course, a wide range of tourism. After all, living in one of the best regions in the world has its price, which varies from county to county in the Algarve. Lagos is the most expensive county to buy a house in the Algarve (2.581 euros/m2), followed by Loulé (2.534 euros/m2). On the other side of the scale are the most affordable counties: São Brás de Alportel (1,230 €/m2), Olhão (1,464 €/m2) and Silves (1,621 €/m2).
Portimão’s Real Estate Market | Causes for the price increase per m2
Since 2013, the property market in Portimão (in particular) and the Algarve property market (in general) have seen steady rises in m2 prices, and this is due to several reasons:
Portimão’s Real Estate Market | Foreign Investment
With so many tourists falling in love with Portimão and making this seaside town their home, it is no wonder that foreign investment in properties located in Portimão and other regions of Algarve is growing: the British, for example, were responsible for the foreign purchase of 56% of the properties in the Albufeira/Loulé area in the second half of last year. And in a more generalized scenario, they continue to be the main clients of real estate agents in Algarve resorts, with an average ticket of 6.600 euros/m², according to data from the study "Resorts Market in Portugal" by Confidencial Imobiliária, in partnership with the Portuguese Association of Resorts.
Besides the British, foreign citizens from Ireland, the Netherlands, or Germany, among other countries, have been investing in the Algarve even in the year of the pandemic, largely due to the Golden Visa regime and Non-Habitual Resident status, programs created by the government in 2008 and 2009.
The Golden Visa (or Residence for Investment Activity) is a regime that allows foreign citizens to obtain temporary residence permits for investment activity, with the exemption of a residence visa to access the country. And Portugal is one of the top three European countries to buy a house under the Gold Visa, attracting mainly British investors looking to overcome the bureaucratic and mobility difficulties posed by Brexit.
The Non-Habitual Resident status aims to attract to Portugal, professionals of other nationalities who carry out activities of high added value or intellectual property, as well as citizens who benefit from pensions obtained abroad. Besides other advantages for Portuguese and foreigners, this status brings tax benefits, depending on the income.
Portimão’s Real Estate Market | Trends and expectations
With consecutive years of high demand, the tendency is for strong investment in Portimão's real estate market to continue. Therefore, the expectation is quite positive. It is believed that the real estate dynamism in Portimão and the Algarve will continue to add value to the national economy, despite the pandemic...
Additionally, both in Portimão and in other areas of the Algarve, new trends are emerging in the residential and tourism real estate market, one of which is the demand (much due to successive periods of confinement) for properties with outdoor areas and with larger indoor areas near green areas. The relationship of man with nature and with sustainable projects that pay attention to the well-being of people and preserve the environment has also intensified the demand for houses in Portimão.
The real estate market in Portimão is quite diverse, with houses for all tastes and at all prices: from old buildings to modern developments, from vacation apartments with terraces and sea view to luxury villas with swimming pools for permanent residence.
Contact Engel & Völkers | Real Estate Agency in Portimão!