Algarve in the world's top 5 for luxury housing in 2023

Algarve in the world's top 5 for luxury housing in 2023

The luxury residential market in Portugal continues to boom, with the Algarve, Porto and Lisbon standing out among the hundred cities or regions in all areas of the world analyzed in The Wealth Report by Knight Frank, a partner of real estate firm Quintela e Penalva.

The study shows that Algarve is in the top 5 world markets in the luxury residential sector, where prices had the best performance in 2023. The study also reveals that one million euros is enough to buy 67 square meters in Quinta do Lago, while with the same amount it is possible to buy 110 square meters in Barcelona or 90 square meters in Lake Como, Italy.

Algarve with a price rise of 12.3%

Among the 100 most sought-after destinations in the world in terms of price appreciation in 2023, the Algarve comes fourth, with a price increase of 12.3%, just behind destinations such as Manila (Philippines, 26.3%), Dubai (United Arab Emirates, 15.9%) and the Bahamas (15%). The shortage of supply and the unique nature of Quinta do Lago explain the sharp rise in prices.

Lisbon and Porto with positive annual price growth

On the list of cities and regions with stable or positive annual price growth are the cities of Lisbon and Porto. Both cities remain in positive territory, with growth of around 2.2% and 5%, respectively. Thus, Porto is in 29th place, ahead of São Paulo, Rome, Barcelona, Milan and Paris. Lisbon is in 60th place, ahead of cities like Dublin, Vienna, Tokyo, Berlin and New York.

The Knight Frank study also reveals that the price of luxury real estate in Lisbon should still grow in 2024, in the order of 2.5%, ahead of Seoul, South Korea, Zurich, New York or Paris.

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 reported in The Wealth Report. The predicted growth in luxury prices in Lisbon continues to be very significant, as demand continues to be very strong in the luxury housing market, particularly in Lisbon, Cascais and Comporta, where demand for luxury properties has increased significantly.

He also adds that this reality is mostly corroborated by the interest and realization of deals by foreign investors, with a high investment capacity.

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