João Carvalho dos Santos on why the Algarve is always a good idea, especially now.
What makes the Algarve stand out as a prime location for international property buyers and investors?
The Algarve distinguishes itself through a rare combination of natural beauty, robust infrastructure, and favorable investment conditions. With over 300 days of sunshine annually, 200 km of stunning coastline, and diverse landscapes ranging from beaches to mountains, the region offers an exceptional living environment. It presents outstanding value compared to other European luxury destinations, with prices in many areas still below pre-2008 peaks. Portugal’s Non-Habitual Resident and Golden Visa programs offer significant tax advantages for foreign investors, although these have evolved in recent years. The Algarve’s well-established tourism industry ensures consistent rental demand, while excellent accessibility via Faro International Airport provides year-round connections to major European cities.
Which areas of the Algarve are currently seeing the most demand for high-end real estate, and why?
The Golden Triangle (Vale do Lobo, Quinta do Lago, and Vilamoura) remains the premier market for luxury real estate, thanks to its world-class golf resorts, exclusive beach access, and extensive amenities. Lagos and the surrounding western Algarve are seeing rising demand due to their authentic Portuguese charm, beautiful beaches, and relatively better value compared to the central Algarve. The hills north of the coastline are also attracting interest, offering greater privacy, larger land plots, and panoramic views while still being close to the coast. Meanwhile, emerging luxury developments around Aljezur and Sagres are drawing environmentally conscious investors seeking sustainable, high-end living in less developed areas. In the east, Castro Marim continues to showcase why the Algarve remains in the spotlight.
What kind of return on investment can buyers typically expect from Algarve properties, both for long-term appreciation and rental income?
In prime locations, long-term appreciation has historically ranged from 4–7% annually, with premium coastal and golf properties outperforming inland areas. Rental yields are particularly attractive, with vacation properties in top locations achieving 6–10% gross returns during peak seasons. Year-round rental demand is increasing, driven by digital nomads and long-stay winter visitors. Return potential varies by property type, with new, energy-efficient homes commanding premium sale and rental prices. The luxury segment has shown notable resilience during market fluctuations, often maintaining value better than mid-market properties.
Why is now a strategic time to invest in the Algarve, and how can JLL support buyers in making the most of the opportunity?
Market conditions are currently favorable: property values are rising but still below those in other top-tier European destinations; Portuguese banks offer competitive mortgage terms to foreign buyers; infrastructure investments, such as the planned high-speed rail link to Lisbon, promise long-term value enhancement; and although regulations have tightened, opportunities remain before further potential restrictions take effect.
JLL supports investors with comprehensive services including tailored market analysis, strategic property identification, coordination of due diligence with legal and tax advisors, and skilled negotiation to secure optimal terms. Our global reach grants access to exclusive off-market opportunities, while our deep local knowledge ensures investments align with regional growth trends.
João Carvalho dos Santos
Consultant
T +351 913 301 814
E joao.santos@jll.com
I @joaosantos.realtor
