Statistical analysis reveals that highly exclusive areas, such as Quinta do Lago and Vale do Lobo, see 60% of their transactions involving secondary residences.

This area attracts a predominantly international clientele (80%), notably British and Irish investors; despite prices exceeding the € 13,000-per-square-metre mark, the majority of these property acquisitions are made without bank financing.

The momentum in the premium market, dominated by villas with pools and sea views or apartments near golf courses, has also extended to Vilamoura, where prices rose by over 106.2% in the last year. Meanwhile, Albufeira and Carvoeiro show the greatest imbalance favouring seasonal use, with 43% of purchases intended for second homes and 36% for investment, leaving only 21% for primary, permanent residences.

Beyond the Algarve

Beyond the Algarve circuit, a report released by idealista News identifies Comporta and the West region as major emerging markets in the second-home segment.

Comporta has benefited from its proximity to Lisbon, an architectural identity defined by understated luxury, and a structural supply shortage caused by environmental restrictions, factors that drove a 12.3% increase in transactions in Alcácer do Sal.

In the West region, second homes now account for 40% of real estate purchases; the buyer profile is predominantly international (55%), with notable representation from US, French, and German nationals, and the average price is €3,103 per square metre.

In comments cited in the document, Margarita Oltra, Regional Manager at Engel & Völkers, emphasised the market's strong resilience and highlighted that the consolidation of regions offering alternatives to the Algarve strengthens the country's ability to attract new investors focused on lifestyle value.

The Algarve is solidifying its position as the leading national destination for real estate investment focused on second homes and seasonal tourism.