The Algarve, known for its villas and warm climate, has attracted strong interest from investors this year.
Ideal Homes Portugal, an estate agent in the region, has sold four times the usual amount of homes in the region, at 320.
It seems there’s rental demand too, as travel company SandyBlue has seen a growing number of enquiries for larger groups looking to travel to the region.
Chris White, founder & chairman, Ideal Homes Portugal, said: “2021 was a record-breaking year for us with hundreds of homes sold to a wide range of buyers.
“Interestingly, as well as British buyers, 90% of homes were sold to US nationals keen to enjoy ‘the California of Europe’.
“We saw considerable demand for Lagos and surrounding areas with buyers drawn to the restaurants, historical attractions and high-quality medical facilities as well as the beautiful beaches and pristine golf courses on the doorstep.”
Interest rates of between 0.7% and 0.8% have made Portugal an attractive place to get a mortgage.
Jose Mendonça, mortgage advisor, Ideal Homes Portugal, added: “We expect these rates to be available for the next few years. Provided the Euribor – the European Central Bank Rate – remains in a negative state, we will have rates under 1%.”
Not that it’s all been positive regarding the Algarve, as the region was forced to cancel New Years Eve celebrations due to the pandemic.
