Compass Property Sales – End of Year Review

To all of our readers, we hope you had a wonderful Christmas and we wish you all a very happy and healthy New Year ahead. As we close the doors on 2024, we like to briefly reflect on the year it has been for the Tavira real estate market and for us at Compass Property Sales. As predicted this year has been marked by notable trends and developments that have shaped the property market, offering valuable insights for homeowners, investors and prospective buyers.

Market Trends and Property Prices

Throughout 2024, the Algarve's real estate market as a whole has continued to demonstrate resilience and growth.

• In Tavira, the average property price per square metre was €3,343 for apartments and €3,108 for houses (Source: Portugal Buyers Agent).
• This positions Tavira as a moderately priced area within the region, offering a good balance between affordability and investment potential.
• The Algarve's luxury real estate sector has remained buoyant, outperforming other major international markets (Source: The Portugal News). This trend underscores the region's appeal to high-net-worth individuals seeking premium properties, with areas like Quinta do Lago and Vale do Lobo experiencing heightened demand.

Foreign Investment and Market Dynamics

Foreign investment continues to play a significant role in the Algarve's property market. Notably, over 50% of property investments in the region are attributed to international buyers (Source: Idealista). This influx has contributed to sustained demand, particularly in sought-after municipalities like Tavira, Loule and Lagos.

Sustainability and Energy Efficiency

A growing emphasis on sustainability has influenced buyer preferences in 2024. There is an increased demand for energy-efficient homes, reflecting a global shift towards environmentally conscious living. (Source: Portugal Portfolio). This trend is expected to continue, with more developers incorporating green features into new constructions.

Rental Market Insights

Despite recent rule changes, the rental market in the Algarve has remained strong, with Tavira recording rental prices around €9 per square metre (Source: Idealista). This stability indicates a healthy demand for rental properties, ensuring that Tavira is an attractive option for buy-to-let investors.

Compass Property Sales Roundup

We are delighted to report that 2024 has been a landmark year for Compass Property Sales. This has been our strongest year since we launched, a milestone that reflects the growing demand for property in the Algarve and the trust and recognition we have built in Tavira and beyond. One of the most significant shifts we have observed this year is in customer behaviour and expectations. Clients are increasingly turning to our website for information and enquiries, signalling a preference for direct, personalised engagement over the use of traditional property portals. This change highlights a broader trend in that buyers and sellers are seeking more tailored, transparent and informative interactions when navigating the real estate market.

Looking Ahead

As we move into 2025, the Tavira real estate market is poised to continue its positive trajectory. Factors such as declining mortgage rates and sustained foreign interest are likely to further stimulate the market. Additionally, the ongoing focus on sustainability may lead to an increase in the availability of energy efficient properties, aligning with global trends and buyer expectations.

We are optimistic for what 2025 will bring….

Best regards,

Paul Greenhalgh

Compass Property Sales