An atypical year that has impacted countless economic activities leaves us all particularly expectant for good news. While many activities remain on hold for an indefinite period, the real estate market continues to record growth.
This arises not without its own challenges, namely because it is an activity that largely depends on social interaction and face-to-face visits. Fortunately, its professionals were able to quickly adapt and accelerate the use of technology to reach your product to an increasingly broad audience.
Virtual visits, videoconference meetings and streamlined electronic documentation are just some of the terms that are here to stay. In a year in which we all lived much longer inside doors, it was certainly a major factor that resulted in values like those we currently observe in Faro.
Prices remain high despite the pandemic
The data present in the most recent real estate price barometer continue to place Faro as the second district with the highest prices nationwide. Only surpassed by Lisbon, it currently sees the average sale price set at € 456,142 in February. This is an increase of 1.6% in relation to the previous month.
The same positive performance is reinforced when looking at the same period last year. In February 2020, the average prices were € 446,503. An increase of 2.2% in the midst of a pandemic shows a unique resilience of the real estate sector in the south of the country.
But will 2021 continue to be marked by the same force?
2021 presents its own challenges
With the end of the credit default and at the moment without the prospect of an extension to this highly complex point, the positive performance observed in many districts could be seriously affected.
Despite the challenges that 2020 and the first quarter of 2021 posed to the real estate sector, the financial policies in force have sufficiently protected the interests of countless homeowners with mortgage loans.
With the economy still far from its ideal pace and with countless business segments completely at a standstill, the global outlook is not particularly easy ahead. In spite of everything, not all Portuguese people had a very sharp drop in income, which could go a long way in keeping the situation stable over the next few months.
The future of real estate in Faro
Buying a house in the district of Faro may continue to be an appealing investment. From the outset, it is expected that the luxury market, largely responsible for the high prices practiced, will continue to enjoy a demand similar to that observed until now.
If there is a structural change that the pandemic has accelerated, it is related to the increasing adoption of telework. If this means that many will now consider living in different parts of the country, only the next few months should demonstrate this.
With unbearable prices like those registered in cities like Lisbon (€ 551,602 in February), it is plausible to assume that given the opportunity, many professionals who work remotely see this opportunity as unique.
Despite the high average values of the capital of the south of the country, the common residential market (outside the luxury segment) continues to offer numerous options at appealing prices. As an attraction, there is an irresistible possibility to enjoy the inviting Algarve climate not only for a few weeks a year, but full time.