Strong demand from non-EU renters makes the Algarve a key opportunity for property investors.
Portugal’s property market continues to draw international interest, with the Algarve standing out as a prime location for rental investments, according to the latest data from idealista.
Non-EU residents led demand for rentals in 2024, with 56.3% of rental inquiries in the Faro district (which covers the whole Algarve) coming from outside the EU. This trend reflects broader shifts across Portugal, where non-EU residents accounted for 63.8% of total rental interest.
According to the report, demand for rentals last year increased in Faro, Portalegre and Funchal, with the Algarve’s rental market emerging as a stronghold for international tenants.
Meanwhile, despite recent policy changes, international interest in Portuguese real estate remains steady, with non-EU buyers representing over half of overseas property searches in Portugal.
These buyers led demand in 15 major cities, including Lisbon (60.2%) and Porto (60.4%), but in areas like Faro, Portalegre, and Viana do Castelo, EU residents were the primary drivers of property searches.
With a thriving rental market and continued interest from non-EU tenants, the Algarve is positioned as a key market for buy-to-let investments. This combination of high rental demand and a stable policy environment makes the Algarve an attractive destination for property investment.
For those considering buying a property, whether to rent out or enjoy full-time, now may be an ideal time to enter the market as prices begin to stabilise. Engaging with a local estate agent like Algarve Home Sales can provide crucial insights into rental trends.