Another year over and a new one just begun...
Well, 2024 has been an epic year all round. Following a few years of relative stagnation, we restructured in 2023 and have not had chance to come up for air since.
The group has developed into 4 distinct markets, and you will see continued growth and development going on in 2025! Property Sales (B&P), Rental & Management (Resort Rentals), Residential letting (Lagos Long Lets) and accountancy (Inspired Accounting).
It is always a matter of where to start but let’s start with a review of the Sales market in 2024. I will issue further updates in future newsletters on the portfolio..
The year started as 2023 ended with the buoyancy associated with the Covid recovery. As we moved into the summer we started to see a settling in the market, as wars, elections and a general malaise were felt across all industries. We still had a solid summer and in fact we saw around a 10% increase in traffic, both enquiries and viewings. Sales were a little down, but we still made our quota for the 3rd quarter. As we approached the final quarter, which traditionally is our busiest period, it did not let us down. A total of almost 40 agreed sales in 12 weeks coupled to high traffic across the board meant that the team have been extremely busy selling and listing new properties for sale. In fact, we achieved our highest level of listings for several years. Strike rates are at an all-time high and the quality of the properties is again one of the best we have ever had. So, if you are either looking to buy or sell as ever, we will offer you not only the best opportunity but also the very best service. Average sales pricing has also increased once again. 2024 vs 2023 saw a 12% increase.
Moving into 2025 this superb portfolio of properties puts us in a very strong position. I am expecting the market to soften a little in 2025 as pricing points level a little. That said, and even though the western Algarve does seem to be an expensive place to buy there is still a long way to go before we catch up on Quinta da Lago, Vilamoura and even Cascais. The apartment market is very strong, and prices have moved so much that some apartments are more expensive than villas with pools. A strong US market where condo living is normal is helping fuel this market along with wealthier clients looking for secure lock up and leave homes (not bolt holes anymore). The mid-priced villa market 700,000 – 1,500,000€ is very buoyant, with high quality, correctly priced villas being sold with weeks not months as this market is replacing what used to be the bread-and-butter villa market of around 500-800k sector. The higher priced villa market is broken into 2 distinct areas - 1.5m to 2m – this sector is also enjoying a strong period. The overseas property market is like a pyramid. With lower value properties at the bottom with lots of properties and lots of buyers. As you rise through the pyramid there are less properties and less buyers! So, it is normal that the higher end 2m+ is the slowest area. That said we are selling one of these properties every 8 weeks and 3m+ every 12-16 weeks. However, this is regional. In Quinta da Lago it will still cost you at least double to buy the same villa as you can buy in the western Algarve, whether that is at 2m€ or 4m€. We are catching up (as we have been for 20 years) but still way off their heady pricing heights. My view is there is a ceiling price in the western Algarve. This figure appears to be around 3-3.5m€. Properties are selling at higher price points but from listing to selling is much longer as the vendor needs to be patient and wait for the right client within the pyramid.
2025 will see further investment from B&P with a new website, improved SEO and continuation of our (much copied) marketing strategy. This will ensure that we offer the very best exposure for your property when selling and the best chance to find that perfect buyer for your property. We have a new fleet of cars for our highly experienced and committed sales team and 2025 will also see some additional developments to assist the team in selling properties, assisting buyers in the process. All will be revealed in January!
So, lets celebrate 2024, another record year and a fantastic and enjoyable year.
From all the team here at B&P, I would like to wish all our clients, existing, previous and yet to meet a wonderful. Happy & Healthy Christmas, Holidays and New Year!
See you all on the other side!
David Westmoreland
Managing Director
Inspired Group
