Agents attribute the primary factor behind this surge in property prices to a noticeable increase in American buyers, which has changed the demographics of high-end real estate in the Algarve significantly. Pre-pandemic, Americans made up less than 1% of prime home buyers here; now, they account for a substantial percentage, indicating a rapid shift in market dynamics. With this influx, agents report that every second person in local areas like Loulé now seems to be American.
The property market in the Algarve has seen remarkable growth, particularly as prices for prime properties have skyrocketed over 30% in the past year alone. The strong performance of the US dollar has also influenced prices, encouraging American tourists to invest in luxurious homes—their buying power significantly contributing to heightened demand amidst a situation where the market has record-low supply of high-end properties.
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