Friday, May 24, 2024

Algarve in top 5 of world’s luxury residential markets

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These conclusions are in The Wealth Report, an annual study by the consultancy Knight Frank, a partner of the real estate company Quintela e Penalva since 2021, which also reveals that one million euros is only enough to buy 67m2 in Quinta do Lago.

The study shows that the Algarve is in the top 5 of the world’s markets for the luxury residential sector, where prices performed best in 2023.

According to the study, among the 100 most sought-after destinations in the world in terms of price appreciation in 2023, the Algarve appears in fourth position.

With one million dollars, it is possible to buy a luxury “second home” residence with 67 square meters (m2) in Quinta do Lago, in the Algarve. The scarcity of supply and the unique character of Quinta do Lago explain the sharp growth in prices.

Lisbon and Porto continue to grow

On the list of cities and regions that register stable or positive annual price growth are the cities of Lisbon and Porto. The two cities remain in positive territory, with growth of around 2.2% and 5%, respectively. Thus, Porto appears in 29th position, ahead of São Paulo, Rome, Barcelona, Milan or Paris. Lisbon, on the other hand, is in 60th place, and surpasses cities such as Dublin, Vienna, Tokyo, Berlin or New York.

For Francisco Quintela, CEO of Quintela e Penalva, Knight Frank’s partner in Portugal, “Lisbon continues to be on the radar and is in the top 10 of the survey in terms of location for new buyers, as stated in The Wealth Report. The forecast for luxury price growth in Lisbon continues to be very significant, as demand continues to be very strong in the luxury housing market, namely in Lisbon, Cascais and Comporta, where demand for luxury real estate has increased significantly.” It also adds that this reality “is mostly corroborated by the interest and completion of business by foreign investors, with a high investment capacity”.

According to Knight Frank’s The Wealth Report 2024, the number of Ultra-High-Net-Worth Individuals in Portugal – those with a net worth of $30 million or more – will increase by 25%, reaching 1000 individuals by 2028. Kate Everett-Allen, Head of International & Country Research at Knight Frank, said: “This, combined with the expectation that the ECB will start cutting rates in the summer, along with the recovery of the country’s tourism sector, will attract more homeowners and second home investors. Luxury prices are therefore expected to increase by 2.5% in Lisbon in 2024.”

Hello reader, I’m Ben. I love to write and talk about sports and I am, unfortunately, hopeless at golf. Thanks for reading! 

Ben Lynch

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