Algarve’s Surge in Tourist Occupancy Signals Property Buyers in Lagos

The Algarve’s tourism sector continues to show strong signs of recovery and growth, with April 2025 recording a room occupancy rate of 68.8%, according to the Algarve Hotels and Tourist Resorts Association (AHETA). This figure represents a 6.8 percentage point increase compared to the same period last year and confirms the region’s steady upward trajectory.

While this may seem like good news primarily for the hospitality sector, the implications for the real estate market in Lagos, one of the Algarve’s most sought-after areas, is equally important.

Holidaymakers to Homebuyers

Trends in tourism often precede shifts in the housing market. Increased occupancy typically reflects growing international interest, which, over time, leads to a rise in property purchases by foreign nationals and long-stay residents. For buyers exploring homes for sale in Lagos, Portugal, the current market offers an early-mover advantage.

The AHETA report also noted that markets such as the British, German, and Polish showed longer average stays, with Norwegians topping the list at 7.7 nights. This extended presence indicates not just seasonal tourism but a growing appetite for semi-permanent or permanent living, a trend that supports demand for Algarve properties.

Why Lagos Is in Focus

Lagos continues to be a leading choice for both lifestyle buyers and investors. Properties here also work well for short term lets, popular with digital nomads, while also being seen as long-term lifestyle investments.

This demand is reflected in the steady activity among us real estate agents in Lagos, Portugal.

Strong Tourism = Strong Property Potential

For buyers watching the market closely, tourism data like the AHETA occupancy report offers useful insights. When holiday demand rises, it often paves the way for:

- Higher rental yields for investment properties

- Increased resale value due to location popularity

- Better infrastructure development in key towns like Lagos

In short, rising tourism demand translates to long-term property value, especially in areas like Lagos where the market combines lifestyle appeal with investment viability.

Ready to Explore Opportunities?

If you’re considering a move or investment in the Algarve, now is the time to take a closer look at property in Lagos, Portugal. With international interest growing and occupancy rates on the rise, the foundation for a sound investment is already in place.

Speak to our expert team of estate agents in Lagos, Portugal to help you navigate the local market.