Portugal Property Market 2025: Cerro Novo Properties Market report
By Robert Edwards – Cerro Novo Properties | July 2025
Despite global economic headwinds, the Portuguese property market – particularly in the Algarve – has shown impressive resilience throughout 2025. The year so far has unfolded in clear phases, each revealing important shifts in buyer sentiment and market dynamics.
A Strong Start to the Year
The first quarter of 2025 brought a significant upswing in activity, with twice as many sales recorded compared to the same period in 2024. This strong start was fuelled by pent-up demand from UK, French, German, Dutch, Portuguese, and Polish buyers, alongside sustained interest from North American clients pursuing lifestyle investment or relocation.
A Temporary Slowdown
In April, the announcement of new US tariffs under Donald Trump’s administration caused a noticeable dip in market confidence. Enquiries and property viewings slowed considerably throughout April and May as buyers adopted a wait-and-see approach amidst economic and currency concerns.
Confident Buyers Return
Encouragingly, the past six weeks have shown a sharp rebound. We’re seeing a strong flow of well-qualified buyers with higher budgets, clear objectives, and a readiness to proceed. As a result, numerous sales have been agreed across a wide range of property types and price points.
Key Market Trends in the Algarve
Here in Albufeira and the Central Algarve, we’re seeing:
- A healthy increase in property values, especially in prime coastal locations
- Rising demand for modern designs and contemporary homes within walking distance of amenities
- Strong activity in the €500,000 to €2,000,000 price range, particularly for high-quality, well-maintained villas
- Renewed interest in off-plan and renovation projects, driven by buyers seeking customisation, energy efficiency, and style
What Sellers Should Know
Regardless of whether a property is exclusive or non-exclusive, every Cerro Novo listing benefits from:
- Professional photography
- Drone footage
- Detailed floor plans
- Well-crafted property descriptions
This ensures maximum visibility and buyer engagement across all platforms.
Sellers who prepare their properties carefully and are flexible on pricing are typically rewarded with quicker sales and stronger offers. Those that are overpriced or lack presentation, however, continue to sit on the market.
Rental Market & Investment Appeal
Short-term rental demand remains high, particularly for properties with AL licences in popular areas. Buyers seeking both personal enjoyment and rental income are increasingly viewing the Algarve as a secure and rewarding investment.
As Lisbon and Porto markets level out, the Algarve is emerging as Portugal’s standout region for value, growth, and quality of life.
Polish Market Focus & International Reach
In response to growing demand from Polish clients, we’re pleased to confirm that our Cerro Novo website is now fully available in Polish, making it easier for buyers to browse listings, explore the Algarve, and understand the buying process in their native language.
We will also be attending the “Live in Portugal” property exhibition in Warsaw on 17th September 2025, held at the Hotel Regent. We look forward to meeting Polish buyers in person and showcasing the very best the Algarve has to offer.
Looking Ahead
The outlook for the rest of 2025 remains positive. Interest rates are stable, mortgage options are available, and demand from international buyers is expected to remain strong through the autumn.
At Cerro Novo, we’re here to guide you every step of the way – whether you’re buying, selling, or simply exploring your options.
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