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 overshadow most of the economic, social, political events at a macro 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 dependant 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 decrease as working from home has translated into working from resort destinations.

The beginning of 2023, particularly in this luxury bubble, has presented results that align with these exacts predictions. As an area dependant on mostly seasonal occupancy, these luxury resorts have now become the home for families and remote workers looking for a post-pandemic lifestyle change. Market listing prices have become steady and a slight increase in stock availability has allowed for the year to begin at a regular and stabilised pace.

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