Faro is the capital of the Algarve, a bustling city where something always seems to be happening. Faro Portugal real estate has long been an attraction for incoming expats, with dreamy beaches, a rich history, and its quirky, cobbled streets. Nonetheless, this fine city is sometimes overlooked in favor of other gems in the Algarve. Although there are a multitude of desirable locations to buy in the sunny south, Faro is certainly on the list. Finding a property here places buyers in an excellent position, for home seekers and investors alike.
In this article, we’ll delve into what makes Faro such a promising investment hub or homebuyers paradise. Following this, we’ll provide you with an overview of the city. This will include the city’s vibrant history, and practical information that you will need to know when buying here. If you are looking to move to Portugal, Faro could be the place for you.
Faro Portugal real estate
With a strong expat population, and as a favorite tourist destination, real estate in Faro Portugal has evolved over the years to cater for all sorts – luxury properties, short and long-term rentals, and second homes. Here, we’ll share some key insights into the real estate market and why Faro could be the ultimate location in which to invest, relocate or simply have a safe haven to escape to come summer.
Why invest in Faro Portugal real estate?
Faro is located in the middle of the Algarve. Its central location, with Faro airport the gateway to the region for those arriving by plane, is an added bonus. For travelers, you will be able to quickly and easily travel both nationally and internationally.
Indeed, Faro is very popular with expats, and after Lisbon, Faro is the most expat-heavy city in Portugal. Indeed, Faro accounts for 15.7% of the expats in Portugal. This popularity is beneficial to investors, with demand focused on this sunny city in the south as expats continue to choose the city in their move to Portugal.
Investors will be content to find that house prices are cheaper in Faro when compared with some of the more exclusive postcodes, such as Lagos and Albufeira. The average apartment price was €2,042/m2 in 2020, and the average villa price stood at €2,288/m2.
Rental yields are also profitable for investors, standing at 5.89% in 2020. As one of the safest countries in the world, and with the Algarve being one of the most sought-after holiday destinations, landowners should be pleased to know that there should be no problems finding tenants for their properties – particularly as travel restrictions are gradually easing up following the COVID-19 pandemic.
Faro Portugal real estate- types of property
You can find many different property types in Portugal. In the city itself, you have many modern apartments that cater to the large expat population. You also have many beach houses with sea views, townhouses, and spacious villas.
Whichever type of property you are looking for, you should have no issue finding it in Faro – whether it’s a four-bedroom family house or a swanky modern villa with your own pool. Rest easy that with some scouting around, you should come up trumps.
Faro Portugal real estate- luxury property
Homebuyers and investors looking for a little more flamboyance will be pleased to know that Faro also has a rich luxury market. You can choose from luxury villas with sea views and pools, properties close to the beaches and golf clubs, alongside modern houses and killer apartments.
While Vilamoura and the Golden Triangle close by usually capture the headlines in terms of luxury in the Algarve, there are several options close to Faro where you will be able to find your dream home.
Faro – an overview
Faro has been the capital of the Algarve since 1756. The gothic cathedral can be seen inside the ancient walls of the city center where you have typical cobbled streets leading to the Paço Episcopal palace. Outside these walls, you have a scattering of top bars, restaurants serving delicious fare, and scenic plazas.
To the south of Faro, you have the acclaimed Parque Natural de Ria Formosa, which is a must-see in Portugal. These unique saltwater lagoons are home to many migratory birds. Along the seaward side are where you will find the pristine beaches of Faro – where you can unwind and relax.
History of Faro
There have long been inhabitants in the Ria Formosa lagoon since the Palaeolithic age. The first settlements date back to the fourth century BC when the Phoenicians colonized the western Mediterranean. Known as Ossonoba, this was the most significant urban center and commercial port in southern Portugal.
From the second to the eighth century, the ever-present Romans took up the banner of the region, followed by the Byzantines and then the Visigoths before the Moors conquered the region. Under their reign in the eighth century, Ossonoba renewed its title as the most important town in the southwest corner of Portugal.
After some conflicts with Anglo-Norman forces, the Moors were finally defeated in 1249 by the forces of the Portuguese King Alfonso III, after 500 years of rule. Their long rule can still be seen with Moorish influences in the city. Following the Portuguese victory, Faro took over the role of administration of the Algarve areas, with the declining importance of the city of Silves.
During the Age of Discovery, Faro was well-positioned to become the leading commercial center. Following the 17th and 18th centuries, Faro continued to expand, with walls built during the Restoration Wars from 1640 to 1668. In 1577, Lagos to the west had become the capital of the Algarve. However, following the 1755 Lisbon earthquake and tsunami that shook the region, Faro became the capital of the Algarve.
As the beating heart of the Algarve, Faro is a thriving expat community. With many international festivals, some of the warmest temperatures in Europe, and a historic, bustling town, Faro is a very well-located city. For investors, Faro is a hotspot, with opportunities for both short and long-term rentals. Indeed, buying property here can have some very lucrative returns.
Present-day Faro retains a laid-back atmosphere. Here, locals savor the little things – taking time to enjoy their morning coffee, unwinding on the beach, and enjoying the ample amounts of perfectly cooked seafood and fish delicacies.
Lifestyle in Faro
In Faro, as with everywhere in the Algarve, you will be able to live a very active lifestyle. From watersports such as kayaking and surfing to activities that you can enjoy on land, such as biking, yoga, and meditation, you should be able to find many things that interest you. You can even try some new activities or sports while you are at it. Indeed, with a booming expat community, these are great places to get to know your neighbors.
Keen golfers will be able to meet fellow expats at one of the many golf courses in the area. The golf courses in the Algarve are world-renowned.
With a Michelin-star restaurant and many fine-dining experiences, Faro can cater to those looking for a more opulent lifestyle. In addition to many family-owned eateries, where you have perfectly cooked freshly caught fish dishes.
For reitrees, the Algarve is one of the best locations to retire to, regularly popping up in the top ten best places to retire to in the world in the Annual Global Retirement Index.
Climate in Faro
The climate in Faro is typical of the Mediterranean with warm, arid and clear summers, and cool winters. Temperatures rarely fall below 40°F (4°C) or above 92°F (33°C).