What are the best spots for property investment in the Algarve?

If you are looking to invest in property in the Algarve, it’s a good idea to research the different locations suitable for both long and short-term investments. 

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If you are looking to invest in property in the Algarve, it’s a good idea to research the different locations suitable for both long and short-term investments. Our Portugal expert, Marina Pasquill, can help – here she highlights her top tips for the best locations for either a short-term or long-term investment in the Algarve.



Short-term

If you are looking for it, you should be able to find suitable apartments in Central and Western Algarve. If you have the right budget, there are some great developers selling off-plan apartments with a good return on investment in the not too distant future.

A good example of great short-term return on investment is in Porto de Mos, five minutes from Lagos, and home to around 20 high-end, new-build apartments. These luxury resorts come with an indoor gym and pool, and is so close to the waters edge that if you wanted to you could throw a line in to the water off your balcony and attempt to catch that night’s dinner!

A couple of years ago a law was passed stating that there could be no more builds within 800m of the coastline. As a result of this, a lot of developers who had planned to build alongside this development lost their planning permission. Overnight, these 20 or so apartments became highly sought after.  Originally on the market for €325-375,000, now we are seeing them priced at around €475,000 – a great short-term investment! The right investments are out there; you just need to know the right developers and I can put you in touch with them.


Long-term

My long-term investment pick would be Vilamoura in the Central Algarve. This is because in 2015, work on the new marina begins - although this significant project will take a couple of years to complete, when it is done prices are set to dramatically increase! Vilamoura is known as the Algarve’s version of Puerto Banus, and even if you live in well-known affluent areas, Vale do Lobo or Quinta do Lago, there is no marina that will rival this. This is only going to attract more money to the area.

Although prices in Vilamoura are already relatively high, they are expected to dramatically increase with this new development and there is still a good amount of houses and plots to buy. If you are considering an investment as a project, I would definitely recommend buying a house that needs modernisation over simply purchasing a plot of land. This is because there are strict time limits imposed restricting how much time you have to complete this sort of project - so you can’t just buy some land, and wait for it to increase in value. 

Vilamoura is already a highly sought after area, boasting perfectly manicured wide streets with cycle paths and running tracks for all to enjoy – it’s totally geared up for an outdoor, healthy lifestyle. The area already has a very strong pulling power, and this is only set to continue in the next couple of years - making it a great spot for long term investment.


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