E&V Quinta do Lago Market Report 2022-2023

A Quinta do Lago is an internationally renowned luxury resort. It was conceptualized by André Jordan and is located in the golden triangle of the Algarve, along with Vale do Lobo, Vale Garrão, and Almancil. The golden triangle is the most prestigious residential area in the Algarve, known for its luxury offerings that can compete with the best international resorts. The golden triangle is situated in the parish of Almancil (population of 24,000 people) in the municipality of Loulé (population of 72,000 people).

The various resorts in the golden triangle benefit from a unique location within the Ria Formosa Natural Park, with its beautiful natural landscapes and extensive beaches. The golden triangle boasts excellent tourism infrastructure, including several top-class golf courses, luxury hotels and restaurants, as well as tennis courts, an equestrian center, and commercial areas.

The demand for housing in the parish of Almancil was not particularly affected by the Covid-19 pandemic and has been gradually increasing, reaching 526 transactions in 2021. There was a slight decrease in 2022, which is expected to be recovered in 2023. According to Vasco Fernandes, Director of E&V Quinta do Lago, sales in the golden triangle are expected to grow over the next 12 months.

The share of new housing in the total number of properties sold in the parish of Almancil is around 8% of the total transactions in 2022. This is particularly low compared to the average in the Algarve, where the average share of new housing in sales was around 21% in 2022.

Graph 1 | Evolution of the number of transactions in the municipality of Almancil (2019-2022, year):

At E&V Quinta do Lago's agency, international buyers account for around 90% of all residential purchases, with British, North American, German and Dutch international buyers leading the way in the golden triangle. Interestingly, the UK, unlike other markets in the Algarve, remains the most important issuing country in this luxury residential market, soon followed by the United States of America, which being a relatively recent issuing country in this market, is assuming growing importance.

According to Vasco Fernandes, the residential products most sought after by clients of the E&V Quinta do Lago agency are three or four bedroom villas with gross construction areas of 300 m2, with swimming pool, on plots of 1000 m2. The average purchase ticket at E&V Quinta do Lago is around €1.6 million. The percentage of E&V Quinta do Lago's national clients purchasing residential property with recourse to bank credit is very low, not exceeding 2%. In this luxury residential market, the vast majority of transactions are made entirely with own capital with recourse to equity.

Demand in the rental market in the municipality of Loulé (see graph 2) has progressed positively since 2019. In 2022, the municipality of Loulé registered 976 new rental contracts. This means that around 2.4% of the housing stock in Loulé is rented annually, a relatively small figure denoting the small size of the long-term rental market in this municipality. On the other hand, the short-term rental market assumes greater importance, with 17% of the housing stock in Loulé allocated to local accommodation.

Chart 2 | Number of new housing rental contracts in the municipality of Loulé (year):