Since 1983, Garvetur has witnessed several cycles in the Portuguese real estate market. Is the Algarve currently experiencing a new cycle of growth, or is the market beginning to show signs of overheating?

I believe that the current cycle in the Portuguese real estate market is characterised by a segmentation of demand, although the overall trend is showing signs of price stabilisation. However, greater attention must be paid to the structural shortage of supply, in order to bring it into balance with the real needs of families.

Although analysts offer different interpretations, they all rule out the prospect of a bubble, and the figures point to a gradual cooling of the market.

The region is highly sought after by both national and international buyers, but is becoming increasingly unaffordable for those who live there. How can this paradox be resolved?

The major cities and the Algarve, due to the strong purchasing power of foreign investors, investment funds and non-habitual residents, are a textbook example of the need for measures that enable developers to increase the supply of housing aimed at families.

In my view, it will only be possible to increase the pace of construction by intervening to cut red tape in municipal planning and licensing procedures and to facilitate the recruitment of labour, alongside support measures that enable companies to cope with rising construction costs, so that homes can be built at the pace the country needs.

Who is buying property in the Algarve today? Has the buyer profile changed? And which nationalities are becoming more prominent?

Indeed, there has been a transformation in the profile of buyers. However, Garvetur was able to anticipate this change, which indicates that interests vary depending on the regions of the country, by promoting the sustained growth of its offices across Portugal.

Our client profile therefore points to greater diversification among the nationalities of property investors in Portugal, with the country continuing to consolidate its position as one of the most attractive destinations in Europe.

In the Algarve, foreign investment is driven particularly by buyers from the United Kingdom and Ireland, but also from Germany, Belgium and the Netherlands.

Credits: Supplied Image; Author: Garvetur;

The Algarve has traditionally been strongly associated with second homes and tourism investment. Is there currently a shift towards using properties as permanent residences?

The concept of holiday homes has evolved towards permanent or semi-permanent housing, driven both by greater flexibility in working arrangements and by the pursuit of retirement in which quality of life is a decisive factor.

How much further can property prices in the region rise without pushing demand away?

In a dynamic sector such as real estate, which depends both on objective factors, such as the availability of assets, and on more subjective considerations, location and the quality of amenities remain of paramount importance. The region already offers an established intrinsic value and appeals to different buyer profiles, whether because of its quality of life, natural surroundings, heritage, local culture or excellent gastronomy.

There is also significant potential for capital appreciation. It is this diversity that makes the Algarve market one of the most resilient in Portugal, without losing its appeal to investors.

Do investors still see the region as a safe bet, or are they becoming more cautious about property entry prices?

Our data indicates that international demand is becoming increasingly diversified and that Portugal continues to consolidate its position as one of the most competitive residential and investment destinations in Europe. We are not seeing a retreat from investment, but rather greater selectivity and higher expectations among investor clients.

The lack of supply continues to be identified as one of the main problems in the Portuguese market. What is currently holding back the construction of new housing in the Algarve: land, licensing, costs or a lack of project viability?

The lack of project viability is certainly not one of the main problems in the Algarve region. The constraints affecting the Algarve are common to other parts of the country. I reiterate that the structural shortage of supply can only be addressed by cutting red tape, streamlining the recruitment of labour, and implementing a more supportive tax policy to help companies cope with rising construction costs.

Some argue that the Algarve risks becoming a place where it is easier to invest and spend holidays than to live. How can this scenario be avoided?

In order to build homes at the pace the country needs, and not just in the Algarve, new housing policies are required, along with greater cooperation between central and local government and a strong partnership between the public and private sectors.

The scale of the problem cannot withstand further delays. Taking the Algarve as an example, I would say that tourism development is not possible without housing for the skilled workforce that the sector requires.

Credits: Supplied Image; Author: Garvetur;

Garvetur is not simply a real estate agency: it positions itself as a company capable of supporting the entire investment cycle. How is the business evolving, and which services are currently in greatest demand?

The main interest for our clients lies in the synergies and know-how of the Enolagest Group, the holding company of which Garvetur is the anchor company, with 42 affiliated companies. The key words that define our activity are integrity, commitment and professionalism.

Our mission is to ensure, through a comprehensive range of services, the satisfaction of investors, property owners and clients. We therefore focus on teamwork and continuously seek to improve the organisation’s efficiency and the innovation of our services.

What are Garvetur’s main priorities for the next five years?

The Enolagest Group offers a unique service model in Portugal by creating synergies among the 42 companies within the holding company, enabling customer satisfaction and professional recognition among partners and suppliers.

Garvetur, headquartered in Vilamoura, currently has offices in Lisbon, Porto, Santa Maria da Feira, Leiria, Guimarães and Fundão, as well as in most of the Algarve’s cities and towns.

Our priority is to maintain sustained growth and anticipate the services our clients will require, consolidating our position as a benchmark within the Enolagest Group, both nationally and internationally.

Please contact 00351 289 322 488 or info@garvetur.pt