Large property projects are being unveiled in the Algarve, Portugal’s sunny southern region which continues to steadily attract investment
Driven by demand, several property projects are being developed in the Algarve, from residential developments to brand new resorts and a new marina. Even in times of uncertainty, investors firmly believe the Algarve will always be a “highly trusted and desired destination”. And judging by the increasing number of potential buyers showing interest in the region, no wonder developer confidence is high.
The number of tourists visiting the Algarve has been steadily increasing in the last decade. But people are not travelling to the Algarve just for holidays; many come here looking for a place to live, attracted by the unique lifestyle that the region has to offer.
Following successful efforts to diversify its markets and prove that the Algarve is more than just its stunning beaches and wonderful weather, the region has seen its popularity skyrocket to levels never before seen in emerging markets such as the USA and Canada and traditional markets such as the UK and Germany.
Looking to capitalise on the influx of tourists and potential buyers, developers across the Algarve have been launching new property projects, encouraged by the region’s untouched reputation as a safe and attractive place to visit and live.
Developer confidence high
The Resident spoke with some of the region’s major developers to find out what’s new.
In Quinta do Lago, Almancil, (Loulé), a large new project named North Grove is being developed. Featuring 13 untouched plots overlooking the resort’s iconic North Course, the development marks the “final opportunity to purchase undeveloped land” within the resort. These plots, ranging in size from 1,495 to 1,688 square metres, come without architectural design restrictions, allowing buyers the freedom to “build their dream homes” on up to 20% of the plot area.
According to the resort, “each plot includes additional land area, functioning as an extension of the garden, attracting buyers looking for exclusive and sophisticated villas. These properties offer privacy combined with easy access to all the high-standard facilities and amenities of the resort”.
Apart from the launch of the North Grove, Quinta do Lago has been carrying out several investments, totalling over €60 million in recent years, to improve its infrastructures and what it has to offer. This includes the opening of The Campus, the resort’s multisports centre, as well as the renovation of several facilities, such as the South golf course, the Casa do Lago restaurant, Gigi’s Bar and the resort’s Clubhouse. Furthermore, two new covered padel courts were inaugurated in 2023, while renovations at the Casa Velha restaurant were completed.
“All these improvements aim to keep the resort at the top of Europe’s luxury destinations,” the resort tells the Resident, stressing that the real estate market at Quinta do Lago has proven to be “resilient and attractive, even during times of global economic uncertainty.”
The resort also says that the Algarve continues to be a “highly desirable destination”, with “increasing demand for luxury properties”.
“Average property prices in the region have maintained an upward trend, bolstered by strong international demand, especially from the United Kingdom, Ireland, and increasingly from the United States. The continued success of the resort, combined with its prime location, high-quality infrastructure, and appeal for an active and sustainable lifestyle, are crucial factors that inspire confidence in investors to keep betting on the region,” Quinta do Lago says.
Nearby at Vale do Lobo, several new projects are also underway.
A new development named Vale das Flores is in the pipeline, although further details have yet to be revealed, while new off-plan properties are being introduced at Vale Real, which will include apartments, linked villas and townhouses.
“The demand is already incredibly high, with a waiting list of clients eager to be the first to secure a reservation,” says Alda Filipe, Regional Director at Kronos Homes and Board Member at Vale do Lobo.
As Alda Filipe tells us, Kronos Homes has had an “exceptional first year of sales since taking over Vale do Lobo in 2023, and the momentum remains strong this year.” At Oceano Clube, one of Vale do Lobo’s prime oceanfront areas, plots have completely sold out.
“The demand for coastal living, both as primary residences and second homes, remains robust across our Algarve portfolio. We continue to see strong interest from UK and Irish buyers, with increasing attention from the US market as well. For instance, at our Salema Beach Village development in western Algarve, 45% of our buyers are from the US,” Alda Filipe says.
The group’s recent launch of 58 apartments at Salgados Resort – The Flamingos – has also seen “overwhelming demand, particularly from Portuguese buyers. Many of our clients from Lisbon and Porto, who have vacationed here for years, are now seizing the opportunity to own a property with beach and golf course access right at their doorstep,” she says.
“Properties in the Algarve are often viewed as long-term investments due to their enduring appeal and resilience against market fluctuations. We’re also seeing growth in lifestyle buyers who prioritise personal use and are more risk averse. Notably, the great majority of international buyers in the Algarve are British, while interest from American buyers and young families seeking a healthy, active lifestyle, favourable cost of living and high-quality homes is increasing,” she adds.
Meanwhile, many of the biggest projects being carried out in the Algarve are in Vilamoura, where the construction of a new marina with 68 mooring berths for larger luxury boats started this year and aims to put the award-winning marina competing with the likes of Monaco and Dubai.
Led by master developer Vilamoura World, the coastal resort is also due to welcome two new real estate projects – Terracota and Nobilus.
Terracota will house 87 “state-of-the-art” apartments in a development which promises to offer a “slice of nature in an urban area”. According to Vilamoura World, “the residential project boasts an expansive outdoor space and community area with a breathtaking pool surrounded by white sand, giving the feel of a five-star beach right on your doorstep. Comprising two, three and four-bedroom apartments, the residential project is named after the Pantone colour ‘Terra Cotta’, a shade used for the stylish palette of the apartments due to its earthy-yet-on-trend modern aesthetic.”
On the other hand, Nobilus is described as an “eco-minded paradise” boasting 47 “stylish and environmentally conscious apartments” in the heart of Vilamoura. “Planned as one of the area’s most high-end residential choices, Nobilus is made from the finest sustainable materials and is situated in a highly coveted area, seamlessly blending with the surrounding natural beauty and the nearby beach,” the master developer says.
Finally, Vilamoura World has just opened a showhome for its Natura Village development, 50% of which has already sold out, with a lot of new international clients “quite notable from Eastern European countries, such as Poland.”
“Vilamoura (…) provides a unique set of advantages for anyone wanting to live here,” Magdalena Osmola, Marketing Director at Vilamoura World, tells the Resident, citing the resort’s “proximity to the ocean (vitamin sea theory), internationally acclaimed marina, golf courses, plenty of bars and restaurants but also education, active living, and wellbeing facilities”.
“We say that Vilamoura offers a distinctive mix of ‘resort-like effortless lifestyle’ and a neighbourhood-like accessibility of services and amenities. It is perfect for those moving here from a big city, for example, striking that perfect balance of relaxation and excitement,” she adds.
Further west in Porches, Lagoa, a new five-star eco resort named Villa Magna is taking shape.
Developed by Livingroup, the resort will feature “62 modern, fully furnished apartments, two swimming pools, a sports village, two restaurants, a bar, a coworking space, 24-hour security, among other amenities.”
“Villa Magna is more than just a resort; it is a concept that aims to integrate luxury and sustainability, reflecting emerging trends in today’s real estate market,” says Francisca Sampaio, Head of Marketing and Communications at Livingroup.
Explaining its confidence in the Algarve, the group says the region “continues to attract an increasingly diverse range of buyers, from traditional European buyers to new investors from emerging markets, such as the American market, which has been solidifying its investments in Portugal, particularly in this region”.
“The combination of exceptional climate, quality of life, safety, and modern infrastructure makes the Algarve a highly sought-after destination today. In the specific case of Villa Magna, our focus on sustainability and creating a space that offers a complete living experience is a key factor that has generated a great deal of interest and confidence among investors.
“We are very optimistic about the future and believe that the Algarve will continue to be an excellent destination for long-term investments,” Sampaio adds.
By MICHAEL BRUXO
