Luxury Property in the Golden Triangle

While experts predict a slight slowdown to the boom felt post-pandemic in 2021-22, this year presents a slow and steady forecast for the luxury real estate business. Even more so for established and niche resorts, such as Quinta do Lago, Vale do Lobo and Vilamoura. Real estate specialists foresee prices holding steady allowing for the relationship between buyers and vendors to even out and stabilise.

As indicated by market analysts of Luxury Portfolio International, the “glut of buying has happened” and buyers are now halting, becoming more patient and taking their time to study future property purchases. In 2022, the global wealth saw an increase of 13% and although, 2023 could see a slight decline of that number, luxury property buyers are still willing and confident to make big acquisitions.

In certain niche markets, as is felt in luxury resorts such as Quinta do Lago and Vale do Lobo, alongside a particular niche of clients, as is with HNWI’s and UHNWI’s, macro-economic implications are not within their top priorities and considerations when analysing the purchase of million euro plus properties. The direct needs and wants to overshadow most of the economic, social, political events at acro level.

Although property purchases in the Golden Triangle are rarely dependant on mortgages, the decrease in rates will allow for potential buyers to re-evaluate purchases, opening the market up for clients to be less dependent on cash buys only. Nonetheless, the law of supply and demand is still reigning, as demand from buyers still prevails on the lack of stock the market can offer and while property prices may not continue to increase, in the least, they will maintain steady.

Clients still see luxury real estate as a safe investment and the pandemic-fuelled property purchase will most likely continue, as buyers are acquiring according to the lifestyle that they want or that they see has become a global trend, need or desire. Moreover, office occupancy rates continue to rise as working from home has translated into working from resort destinations.

Source: www.theportugalnews.com