Buoyant demand for new Algarve homes in visionary and exciting luxury and branded developments

Text: Chris Graeme Photos: Color Shop by Joaquim Morgado

New homes developments in Lisbon and Porto proceed at a pace, but activity in the Algarve reveals a really flourishing market according to Monica Hanlan, New Homes Sales Director for QP Savills, the largest premium and luxury estate agency in the region.

Addressing members and guests of the American Club of Lisbon on Wednesday at its latest Real Estate Meetup event at the Grémio Literário, in Lisbon, Monica revealed that there was an “enormous amount of active global institutional capital and funds available” in the Algarve, and QP Savills works with a whole variety of them.

The key trends that are emerging in the real estate development market in the region, according to Monica, are regeneration, refurbishment, and rebranding; of existing assets in hospitality and tourism; in order to enhance the value of capital growth.

A changing  buyer profile

Other key trends on the buyers’ side is buoyed by a change in the buyer profile, with demand for new homes from a totally different buyer profile to that seen five to 10 years ago.

“The market is younger with digital nomads, and more importantly executive nomads, as well as smart savvy buyers looking for a wise investment on capital value or rental opportunities that investment in the Algarve brings”, she said.

Monica pointed to the longer season in the Algarve compared to Comporta (a luxury gated community development on the Alentejo coast often referred to as Portugal’s answer to the Hamptons), or the North of Portugal, mainly because of the golfing season which extends from March to October, making rentability very strong. “Now we’re seeing true all-year-round returns”.

The Savills QP expert says there is “strong institutional confidence” in the Algarve market across all real estate assets: residential, touristic, hospitality (hotels), and branded residences.

Regeneration of historic cities

There has been significant regeneration in historic cities such as Faro and Olhão which had been “transit destinations” but are now “exquisite” destinations in their own right.

An example is Quinta do Faro, a residential resort with 36 villas with current asking prices for four and five bedroom villas of between €1.7 million (entry price), €2.5 million and €3.6 million. However, despite its closeness to Faro airport and lovely views over the Ria Formosa, it is not within the Golden Triangle. (The Algarve’s Golden Triangle is a term used to describe a luxury area in the Algarve region of Portugal, encompassing the resorts of Vilamoura, Almancil, Quinta do Lago, and Vale do Lobo. This area is known for its luxurious properties, world-class golf courses, Michelin-starred restaurants, and exclusive clubs).

Nevertheless, “the widening of capital growth outside the Golden Triangle is something we are really seeing at the moment”, Monica remarked.

Another project is Del Mar Waterfront Living which is right on the Olhão Marina with lovely views over the Ria Formosa which she says is “amazing” boasting an infinity rooftop pool. This comes at a €1.4 million price tag for a three-bedroom apartment.

Vilamoura World is also being developed into a world first-class resort and residential community. With a 10-year investment timeline of €1Bn from equity firm Arrow/Norfin, it is part of the Algarve’s Golden Triangle.

“Taking the long view, they have great ambitions to raise the quality at Vilamoura to make it one of Europe’s top destinations”, said Monica.

The real estate commodity includes a new 68-berth yacht marina along the waterfront which opened in 2025, while the waterfront is going to be redeveloped for retail and hospitality including a Michelin-star restaurant.

There will also be an international equestrian centre that will attract international showjumping events, a members-only Ernie Els golf course (the first Ernie Els branded golf course in Europe) in a region where he used to live and practice when he was on the European circuit. (Ernie Els is a South African former World No.1 with 80 professional victories to his name, including four Major Championships, one Senior Major, two World Golf Championships and a record seven World Matchplay titles).

There is also the Sports Campus at Quinta do Lago (Within a premier luxury gated resort for HNWI and UHNWI individuals and families with several different community developments, apart hotels, hotels, restaurants and golf courses) which is currently expanding to become three times the current size, offering world-class all-year-round professional training facilities for different sports, targeting international sporting teams. “It’s a great capital income investment story for our investors, offering year-round rental income growth”.

Other developments include Vilamoura’s Arcaya, an exceptional village development in the Golden Triangle from Vilamoura World covering 68 hectares with a 5-7 year development period.

“This is a really visionary, forward-thinking sustainable development targeting both the tourism market and the relocation market”, said Monica. It will have a range of properties, a clubhouse and 24-hour security, as well as a soon-to-be announced five-star branded hotel already creating quite a buzz.

Backing onto the Ernie Els golf course, so far 75% of the buyers are Portuguese showing how the Portuguese are taking early positions on new homes.

Branded Residences

Monica Hanlan says that branded residences are “the hot topic” right now with a lot of curiosity and demand.

At present, in the global context of branded residences, the US leads the way, followed by UAE, Thailand, Brazil, Turkey, Egypt and India all following close on its heels in terms of distribution.

“Europe has a long way to go in order to offer more branded residences and pipeline”, admits Monica Hanlan.

Europe is led by Turkey, the UK, with Spain and Portugal neck-and-neck with the same amount of developments completed, and in terms of pipeline.

Visionary developments

Branded residences in Portugal are primarily located in the Algarve, Lisbon, and Porto. The Algarve is considered the epicenter of branded residential development, with several new projects expected to launch in the coming years. Lisbon and Porto also have branded residence projects, with Lisbon leading in urban developments”.

Regarding completed branded residences in Portugal, there are six in the Algarve, five in Lisbon, with six more in the pipeline for the Algarve and five more for Lisbon and one in Comporta.

There are far more completed and pipeline branded residences on the coast than urban branded developments, which differs from the Spanish market.

There are three branded residents that Savills is working with at the moment that are all very different: Ombria resort with the Viceroy Residences in the “stunning Loulé hills” with entry level at €780,000 for a 1-bedroom apartment and 2-bedrooms at €1.5 million. “What Ombria has done is to create value through all these different facilities and attention to detail in a hand-crafted and really beautiful visionary development”.

W Residences Algarve near Albufeira and the Atlantic Pines Residences Vale do Lobo in Castro Marim near the Spanish border with a stunning beachfront location with out-of-this-world facilities, the latter being  “the closest thing the Algarve has to Comporta”.

Marriott will anchor the residences with a new five-star hotel. “It blends into the countryside so you wouldn’t know that it is there”.

Atlantic Pines consists of three 3 + 1 bedroom villas with a west-facing orientation and come in 2 typologies. Atlantic 1 is the largest of these villas measuring 301 square metres (including the basement) and is set on a plot of 1,077 square metres. Atlantic 2 & Atlantic 3 both measure 254 square metres and are set on plots of 710 & 972 square metres respectively.

The W Residences Algarve consist of one, two, three- and four bedroom apartments boasting best-in-class design: living quarters are kitted out with high-quality and playful fittings inspired by the Algarve local area while most have seafront views and all have unparalleled services and amenities. They are aimed at a younger profile who appreciate W Hotel’s electric approach to life as well as the ability to soak up the calming, beachy charm of the Algarve.

Finally, there is the Palmares Ocean Living Golf offering turnkey villas, signature apartments and prime building plots of land in the Western Algarve.

The resort itself is built into a large natural amphitheatre, offering panoramic views across the coastline and the Alvor estuary.

Adding even greater prestige to this already exceptional destination, JW Marriott has announced the launch of its first property in Portugal at Palmares. This exciting addition will bring world-class hospitality, amenities, and global recognition to what is already one of the Algarve’s most exclusive coastal resorts.

“The development was originally established in 1975 and more recently was acquired by Arrow/Norfin which has put in a Michelin restaurant and a golf course.

“We have a real diversity of beach, golf, and countryside lifestyle resorts and not at all what most people expect. These projects are all ‘out-of-the-box’ making the Algarve an exciting place to be”, concludes Monica Hanlan, New Homes Sales Director for QP Savills.