With the announcement that United Airlines will launch direct flights from the Algarve to New York in 2025, we ask what effect this will have on the property market in the Algarve.
The news of a new travel link for the Algarve is exciting for visitors and residents alike. After an initial setback, direct flights from New York to the Algarve will start in 2025.
With the addition of new flights from the US, can we expect to see even more interest in Algarve real estate, driving up demand and prices?
United Airlines New Flights
According to the news from the newspaper O Público on 1 October, United Airlines will be the first and only American airline to offer direct flights between Faro and Funchal airports and New York.
The seasonal direct service between Faro and New York/Newark airports, initially planned for this year and postponed to May 16, 2025, will be operated by Boeing 757-200 aircraft and will continue until September.
Increase in tourism from the US
The new fights are likely to further boost the Algarve´s tourism growth, which has been going from strength to strength since the end of the global pandemic. Between January and May 2024, a total of 6.9 million foreign residents visited Portugal.
But whether you are on the sunny beaches of the Algarve, the cobbled streets of Lisbon, or admiring the Douro in Porto, you will certainly have noticed the growing sound of American accents. Portugal’s old-school charm is certainly appealing to more American and Canadian visitors who are just discovering its culture, beautiful beaches and delicious cuisine.
Although the UK remains the main inbound market at 19.1%, Portuguese statistics released in May showed the North American market in third place (share of 10.1%), with an increase of 17.3%, overtaking the French market (representing 9.2%).
It seems that North Americans are the reason for the increase in the number of visitors to Iberian destinations. Publico reported that the number of foreign tourists and overnight stays rose again in May and in the first five months of the year compared to 2023, with the main contribution coming from the North American market. “In the first four months of this year, US tourists spent 692.2 million euros in Portugal, an increase of 18.2 per cent compared to 2023, surpassing the 678.4 million spent by Spaniards (-2.6 per cent) and becoming the fourth most valuable market in terms of tourist receipts, according to the latest data from the Bank of Portugal.”
Why are Americans Moving to Portugal?
With such a polarised political atmosphere in the US, many are perceiving that the American dream has become an American nightmare! A recent poll showed that a record 34% of Americans recently declared they would leave the US if they had the means to do so, and many may find that President Trump´s radical changes promised in 2025 maybe too much to stomach.
For the last decade, Portugal has begun to appear on the American radar as more than just a tourist destination. Live and Invest Overseas has nominated Portugal (specifically the Algarve) as the #1 best place for Americans to live abroad more than any other country stating, “Portugal checks every box on the would-be retiree’s list…”
Forbes consistently ranks Portugal among the top countries to retire in based on criteria such as costs, amenities, health care, climate risk, language, crime, and whether they welcome U.S. retirees.
Portugal is consistently ranked as one of the safest countries in the world, with un-rivalled living standards. The phrase ‘amanha’ sums up their attitude that anything can wait until tomorrow.
The Algarve’s laid-back lifestyle, excellent healthcare system, good International schools, and mild climate have proved a magnet for expats, retirees, and digital nomads alike. The Portuguese people are known for their warmth and hospitality, along with their willingness to communicate in English, making it easy for foreigners to settle in.
10 Good Reasons Why the Americans are Moving to Portugal
Affordability
One of the main reasons Americans are flocking to the Algarve is the affordable cost of living. Property prices in the region still compare favourably to many parts of the US, making it an attractive option for those looking to stretch their retirement savings or simply enjoy a higher standard of living for less.
Safety
Persistent gun crime in the US is causing many families to feel under threat in the USl. Reba is a mother of three who just moved to the Algarve. “The children were constantly having to take part in gun drills at school and it is now normal to send your kids to school with a bulletproof rucksack. It´s just not how we want to bring up our children.”
Portugal also has a stable political regime and was ranked number 7 in the 2024 Global Peace Index.
Paul Broadbent successfully applied for a Golden Visa before this scheme was phased out in coastal areas. Although they currently spend their time between Tennessee and Portugal, he and his wife would like to move more permanently to Portugal as they are becoming concerned about gun crime and the volatile political situation.
Temperate climates
The Algarve enjoys one of the most stable climates in the world, without the extreme climatic events such as hurricanes that are experienced in the US. Portugal enjoys an average of 3,300 hours of sunshine per year, providing more sunny days than almost anywhere else in Europe and roughly the same climate as California.
Shirleen Horley was motivated by the weather to move to Portugal: “Living in Portland, Oregon for 30+ years, where it rains almost nine months of the year, helped my husband and I make the decision to retire elsewhere. The kindness of people, the warm weather, the considerably lower cost of living compared to the U.S., and the adventure of it all motivated us to move to Portugal, specifically the Algarve.”
English-speaking population
Portugal ranks number one globally as the most welcoming country for expatriates, and around 56% of Portuguese speak fluent English. The Algarve region also boasts a thriving expat community, making it easy to build a new social circle through sports, volunteering, or social activities.
Gay Rights
Portugal is also very accepting of the GLBTQ community. Former US citizen Mario recently retired to Portugal. ” My husband and I chose Portugal also because it has full gay rights, among all its other positive selling points. We also know many gay couples from the US who made the same move.”
Many Americans feel more aligned with the values and politics of Europe and Portugal, which offers tolerance and stability.
Healthy Living and Healthcare
Many US websites also see health care as a big attraction. Portugal has an extensive tax-funded public healthcare system run by the Serviço Nacional de Saúde (SNS). Based on the English NHS, the SNS offers most essential medical services free of charge to residents. Private health appointments are also comparatively cheap, costing between 50 and 80 €. Private medical insurance is also a fraction of the cost in the US.
Easy to obtain a residency visa
If you’d like to live in the country full-time, there are a number of options available.
Visa options for US citizens include:
● The Portugal Golden Visa for investors;
● The Portugal D7 Visa is for those who have a constant passive income;
● The Portugal Digital Nomad Visa for remote workers;
● The Startup Visa for foreigners who intend to open a business in the country;
● The Portugal D2 Visa for entrepreneurs;
● The D6 visa for family reunification
● Student visas for those enrolled in higher education
● The D1 visa is for those who have accepted a job offer from a Portuguese company
Relaxed Lifestyle
Portugal has a slower pace of life and values downtime more than joining the rat race—and there is plenty to enjoy! There are 220 km of beaches in the Algarve, from small sandy coves to huge expanses of white sand and an abundance of great surf spots. Many of them fly the European blue flag for cleanliness. There are also fantastic beach bars that offer the fresh local catch of the day, washed down with the local green wine.
Sporting Facilities
The Algarve region boasts 42 golf courses in less than 100 miles and is recognised as one of the superior golf destinations in Europe and the world. Many of the expats arriving in the Algarve now wish to make the most of the pleasant weather to enjoy outdoor sports and many new facilities are opening to accommodate them. The growing craze for padel tennis is resulting in many more padel centres opening and some offer pickleball for arriving US expats.
In Praia da Luz, Ocean Padel Club has three double courts, the first of which is in the Algarve with the two-tone blue Mondo WPT Championship surface. Burgau Sports Centre has a padel academy with two double courts, two tennis courts, and three pickleball courts. Bovista Golf Resort offers a golf academy along with tennis and padel courts.
Outstanding Schools
A wide variety of reputable International schools have opened up or expanded in the Algarve to meet the demand of the large number of families relocating here. Many of these private schools are considerably cheaper than they would be in expats’ home countries and offer the opportunity for children to study with excellent academic standards in a school with a global community.
Many expats wish their children to be fully immersed in the local culture and language, so they enrol their children in public schools, which are highly regarded as offering an excellent standard of education.
What effect will this have on the property market?
This is all great news for current property owners in the Algarve. Increased demand from international buyers means that now could be the right time to list your property for sale. With more potential buyers easily accessing the region, you can expect a quicker sale and potentially a higher selling price.
At Ten Hoopen Realty, we believe that the addition of new flights from the US has the potential to be a game-changer. When infrastructure and accessibility improve, so does the property market.
The region’s increased accessibility will attract more tourists and expats, driving up rental demand and potentially increasing rental yields. Plus, increased demand may potentially lead to a shortage of property stock in the future.
Act Now
At Ten Hoopen Realty, we are excited about the potential impact of these new flights on the Algarve property market. If you’re considering buying or selling property in the Algarve, now is the time to make your move.
Contact us today to learn more about how we can help you market your property and give you solid advice on how to make your house stand out to foreign buyers.
