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The latest Portuguese Housing Market Survey by RICS and Confidencial Imobiliario has highlighted robust growth in property prices and transaction volumes in Portugal towards the end of last year. The survey reported an 11% year-on-year increase in property prices and a 27% surge in sales, driven by strong demand and declining interest rates. Kronos Homes, a key player in the Algarve region, has observed significant interest from both investors and homebuyers. The company is investing over EUR 200 million in luxury residences at Vale do Lobo. Additionally, the market is benefiting from Portugal's economic resilience, supported by a thriving tourism sector and strong domestic demand. Forecasts indicate continued positive trends for both sales and price expectations in the coming months.
The recently published Portuguese Housing Market Survey from RICS and Confidencial Imobiliario has underscored the resilience of both property prices and transaction volumes in Portugal towards the close of last year. Advertisement
Ricardo Guimaraes, Director of Ci, highlighted a significant increase in transaction activity as the year concluded, noting an 11% annual rise in property prices and a 27% surge in sales. He attributed this growth to mounting demand pressures and falling interest rates, with families and investors responding swiftly to these changes.
In the Algarve, Kronos Homes, which owns and operates multiple resorts and developments, including the renowned Vale do Lobo resort, has witnessed this heightened demand first-hand. Alda Filipe, who recently became the company's first female Partner in Portugal, stated that interest in Algarve properties had been consistently strong. She noted that both owner-occupiers and investors were keen to capitalise on Portugal's potential for capital appreciation. Buyers from across the globe were purchasing properties, ranging from beachside apartments to spacious villas. She further mentioned that off-plan properties were particularly sought after, prompting Kronos Homes to invest over EUR 200 million in new luxury residences at Vale do Lobo in the coming years.
Beyond central Algarve, Kronos Homes has observed growing interest in properties in the more secluded western regions, such as Salema Beach Village. This development, situated on a hillside overlooking Salema Beach, offers fully furnished two- and three-bedroom villas, alongside amenities such as a swimming pool, snack bar, padel courts, and a multi-use sports area, catering to families seeking a relaxing retreat.
While demand from international buyers remains strong, the Portuguese housing market is also underpinned by healthy domestic economic growth. Tarrant Parsons, Head of Market Analytics at RICS, stated that Portugal's robust economic expansion, driven by strong domestic demand and a flourishing tourism sector, is set to continue. With macroeconomic challenges easing and potential policy rate cuts on the horizon, the country is expected to sustain its positive trajectory, outpacing the struggling Eurozone.
The RICS/Ci Portuguese Housing Market Survey further recorded a 6% increase in new buyer enquiries in December. Additionally, sales volumes had risen by 11 percentage points since the previous month. Looking ahead, sales expectations for the next three months reflected a net balance of +22%, while price expectations for the coming quarter stood at +31%.
Alda Filipe concluded that demand for properties across Algarve remained strong, with optimistic expectations for a highly successful market performance in 2025.
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