During this final quarter of 2022 we find ourselves experiencing the continued increase of property values here in the Algarve as a direct consequence of the consistent rise in demand for property and lack of stock.
While there has been a slight drop in demand for low-mid market properties (potentially due to the continually increasing prices) following recent worldwide events, the higher end of the market is actually flooded with enquiries – which may come as a result of the lifestyle shift occurring, with many people taking advantage of the realization that work is no longer confined to a specific location or an office and therefore opting to relocate full-time or seasonally to sunny Portugal.
As we head into 2023, many are speculating on what will happen to the market moving forward, will there be a continued boom?
As a result of the ongoing war in the Ukraine as well as the European Central Bank’s (ECB) decision to increase interest rates it is expected that the economy could cool down over the next six months… but long term we do not believe that this will have the effects that you are expecting.
Now is still the best time to buy and sell property in the Algarve.
The increase in interest rates by the ECB will affect much of consumer lending, including many mortgages. So, should you require financing to purchase a property in the Algarve, now is the time to assess whether a future increase in mortgage lending could have a very negative impact on your financial situation.
While no one could ever know for sure, the general consensus from local real estate experts in the Algarve is that 2023 will see better offers on properties but due to the continued lack of supply, prices are likely to continue to rise, albeit more moderately than in recent times. So we are looking at a higher prices, higher interest situation, therefore, whether you are considering a fixed rate mortgage or not we would recommend buying property now.
If you have been considering selling your property in Quinta do Lago, Vale do Lobo or Vilamoura, the time to do so is also now as we will see more difficulties for buyers in accessing home loans as well as higher rates in the coming year which in turn may see properties sitting on the market for longer periods of time.
If you require a complimentary property valuation or assistance in navigating your property search in the Golden Triangle please contact us today.