According to Confidencial Imobiliário’s Resorts Price Index (SIR-Resorts), created in partnership with the Portuguese Association of Resorts and with the support of Turismo de Portugal, the price of residential accommodations in resorts increased again, this time by 2.7% over the previous semester, and by 8.6% year on year.
The Resort Market Survey confidence survey shows that the combined expectations regarding the future prices and sales reached 46% this semester, in strong recovery from the low of 21% in the previous period and only surpassed three years ago when it reached 55% in 2018.
According to Pedro Fontaínhas, the Executive Director of the Portuguese Association of Resorts (APR), “The market seems to have gained confidence and believe in the possibility of appreciation. The same is true about sales, where expectations are now at fairly robust levels when a year ago the feeling was that prices would fall and confidence that sales would grow was quite weak.”
In the first half of 2021, resort housing had an average sales price of €4,442/m2, reaching €8,058/m2 in the higher end of the market. These values reflect, above all, the price level in the main resort market, namely the region of Albufeira-Loulé, where there is an average value of €5,266/m2, reaching €9,274/m2 in the top end of the market.
Buyers from the United Kingdom are still the main source of international demand for homes in resorts in the Albufeira-Loulé area, accounting for a 44% share of foreign purchases in the first half of the year. They lost ground, however, when compared to the previous semester, when they accounted for 56% of sales.
In the first semester of 2021, sales of resort housing increased more than 30% compared to the previous semester in Portugal, and the region of Albufeira-Loulé accounted for 45% of the transactions registered in the SIR-Resorts.
The average sales price for this type of property reached €3,928/m2, and topped out at €4,450/m2 m in Albufeira-Loulé.