While there is no convincing evidence that people are permanently moving out of their countries, it is no secret that the market across the Algarve is seeing a convergence of long-term rentals and sales. Both, rental and purchase prices of vacation homes were 7.2% up in 2020 in the Algarve and are expected to raise even higher in 2021.
Following the first Covid-19 lockdown, we saw an invasion of people coming in and snatch up the most attractive properties in many areas of the Algarve*.
Homes alongside the beach serve as temples of privacy and security for foreigners and second homeowners alike. The clean air, sunshine and nature reserves along the Atlantic Ocean are also a huge attraction. With the vaccine approaching, it is uncertain if people will permanently relocate out of their countries to the Algarve, but right now, real estate is competitive.
The glamorous Golf Resorts of Quinta do Lago and Vale do Lobo are no strangers to billionaires and celebrities and now, many wealthy foreigners are considering a primary residence in these glitzy areas. The top destinations experience a real-estate boom also thanks to world-class golf, resort lifestyles, restaurants and shopping, plus easy access to the International Airport of Faro, a 20-minute drive for many.
Despite social distancing guidelines in place, you can find a quiet path to hike or bike. Even If we are required to stay in hard lockdown, people can live in a relatively isolated environment, but can still participate in a large number of outdoor activities provided throughout the year, which will not expose them to the risk of infection or transmission of the virus.
Horseback riding on the beach, hiking and biking at Ria Formosa Nature Reserve, and other outdoor activities is what draws foreigners of all nationalities to the Central Algarve. It’s also filled with luxury real estate on large plots of land that make it so desirable as a relaxing escape.
Not only do people buy here because of Portugal’s tax-friendly status, but those looking for a more outdoor lifestyle have so much to choose from. People can work from home and then have lunch at home or just do some outdoor exercise a couple hours then call it a day without having to come into contact with anyone.
How many lockdowns we have to expect before the world reverts to a next-to-normal situation nobody knows. But for now, let’s welcome all those who are seeking a safe haven for their families in the Algarve.
*Quarter-yearly index, Idealista, 2020