The Algarve Property Market Report
Key conclusions - June 2015
- The Algarve market has reached its strongest demand level for almost a decade. Market confidence has been increasing steadily through 2014 into 2015, indeed gaining momentum
- 90% of respondents reported that market confidence is higher than during the same period in 2014;
- It is evident that the overall mood in the market is buoyant, underpinned by the fact that the number of buyer enquiries, viewings and conversions into sales are all markedly higher year on year;
- There is reported greater confidence
in the Portuguese economy from buyers and in Europe in general;
- As UK purchasers remain the largest single force in the Algarve property market, the positive currency movement in the Euro/sterling rate has been and still is an important factor in the market upturn.
- This is the fourth consecutive survey to report an increase in the level of enquiries
- 83% of respondents reported an increase in inquiries;
- Interest at the top end of the market is still strong, with almost 1-in-10 enquiries being for large villas/mansions and showing the most growth;
- Comparatively interest in properties under €100,000 and between €100,000 - €250,000 was down to 4% and 21% respectively of enquiries;
- Strong continued interest in the Non Habitual Residents tax regime accounted for around 1-in-5 of all enquiries.
- Sales volumes are continuing to increase with the revival strongest at the mid-top end of the market
- All respondents report that completions are at least the same or higher and 70% reported an increase;
- Detached villas are the most popular segment, at 39% of sales;
- Sales of mansions increased to 14%, whilst 17% of total sales were for properties over €2m. Sales of apartments fell from 27% to 23% year-on-year.
- The strength of the market is further indicated by a significant increase in sales conversion rates
- 39% of respondents agents report a 20% conversion rate
- 28% report a conversion rate
- 17% report an impressive
conversion rate of 60%;
- Agents say they are no longer listing properties they consider overpriced or of poor quality.
- Price reductions have disappeared and in some locations prices are rising, partly driven by a shortage of stock
- Actual sales prices were once again relatively steady across the range of property types and locations
- Slight price increases were reported for properties close to the coast
- Prices for the largest and most expensive properties increased the most;
- Many respondents report a shortage of good quality stock, with little new product coming onto the market.
- The Non Habitual Residents Tax Regime has had a significant positive impact on the Algarve market, in contrast to the Golden Visa
- 70% of respondents had received NHR enquiries, which is similar to the Golden Visa but almost double the number of respondents, 47% have had NHR completions
- Villas are the preferred property type, reflecting that most buyers in this scheme intend to be resident here;
- Forty per cent were below €500,000, but there was strong interest at the higher end of the market, with 1-in-4 sales being completed in the €1m - €2m bracket.
June 2015 Results
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