Quinta do Lago, an exclusive residential resort situated in the Algarve, recently released its new property market report ahead of the second quarter of 2019.
The annual report highlights the resort’s main findings from the previous year, and revealed that sales volume and values have risen substantially in spite of ongoing Brexit uncertainty. It also revealed that Quinta do Lago has witnessed a 7% growth per year over the last three years.
Additionally, the report found that the average age of buyers at the resort is falling as it becomes a more family-focused and lifestyle destination. New markets are also emerging, with buyers now appearing from the US, Brazil and the Netherlands.
The thriving nature of the resort is best seen by its soaring house prices – in 2018, prices in the region rose to exceed the 2007 pre-housing crisis level by some 31%. This means the entry price for a plot or single villa has now reached a record-breaking high of €2.5 million.
Last year saw a number of investment opportunities for Quinta do Lago – a gated community and golf resort in Almancil, sandwiched between airport hub Faro and high-end Vilamoura – with a number of new food and beverage outlets, the arrival of a new boutique hotel (The Magnolia Hotel) and the completion of multi-sports hub The Campus.
Expectations for the resort in 2019 remain equally high with a steady confidence in their dominant markets and more emerging markets continuing to grow.
Quinta do Lago already boasts a variety of luxury homes, including new builds, re-sales and rentals – all of which feature ‘top-of-the-range amenities and beautiful, high specification interiors’.
Sticking to its original master plan, established more than 45 years ago, the resort also remains a low-rise, low density and ecologically driven region. This is preserved through careful building restrictions, limited to just 9% amongst 2,000 acres of superb terrain and three renowned golf courses all located in the protected nature reserve of Ria Formosa.
“At a time of international uncertainty, we are proud to consider Quinta do Lago a safe and secure investment for buyers from all across the globe,” Sean Moriarty, chief executive officer at Quinta do Lago, said.
“As our new market report reveals, 2018 was a significant year for our resort with our long-term stakeholders commanding more developments in our world-class golf courses, renowned restaurants, exceptional hospitality and stunning real estate offerings. The investments made into Quinta do Lago provide reliable longevity and prosperity.”
He added: “With the completion of Reserva and San Lorenzo North 1 taking place this summer, we are excited about the next year of real estate at our resort. There are so many benefits and tax incentives in Portugal that British holiday homes buyers have remained our main audience despite Brexit uncertainty.”
That said, Moriarty added that the resort was currently seeing great interest from a variety of other nationalities including those from Switzerland, Belgium, the Netherlands, Brazil and the US.
“This is subsequently generating confidence in our UK investors too,” Moriarty continued. “Furthermore, the expansion of our local airport in Faro now allows direct access from many more European and American destinations.”
Strong house price recovery
According to data from Confidencial Imobiliário, Loulé, the municipality where Quinta do Lago is situated, has been the frontrunner for Algarve’s house price recovery, with 2018 seeing prices in the region soar to exceed the 2007 pre housing-crisis level by more than 30%.
Property in Quinta do Lago performed particularly well, with the demand for luxury, high-specification homes increasing. The first two quarters of last year were the resort’s strongest, while the average sales values increased in both quantity and volume throughout the year.
At present, private villas account for 52% of sales, with apartments close behind at 37% and townhouses accounting for only 7%. In addition, robust resale markets and plot prices continue to perform well with the entry price for a plot and single villa reaching an all-time high of circa €2.5 million.
Who is buying the homes?
While Quinta do Lago’s core market remains buyers from the UK, Ireland and Portugal, 2018 was a significant year for the resort in terms of welcoming emerging markets, with a clear trend ‘in savvy Swiss and Belgium buyers’ returning to the resort.
New markets also appeared from Brazil, the US and the Netherlands - largely driven by the Golden Visa and Non-Habitual Resident opportunities on offer to overseas investors. As mentioned above, 2018 also saw the average age of buyers falling across all aspects of real estate as the development of the resort’s family and lifestyle offerings continued.
What does the future look like for Quinta do Lago?
“Following such positive results for the previous year, Quinta do Lago is feeling exceptionally confident for 2019,” Moriarty concluded. “New products are set to complete in early spring of this year including the luxury, lake-front Reserva residences, plot and property developments at San Lorenzo North and a varied re-sale and rental portfolio.”
Last week we looked at how Lisbon’s property market has bounced back thanks to soaring demand and investment, while Mark Burns of property investment firm Hopwood House has in the past examined why the outlook for Portugal’s property market is brightening and how Golden Visas have boosted the country’s property investment sector.