Algarve. Occupation will reach 100% and most of the supply is almost exhausted

Prices rose again this year and were accompanied by rising demand. The best deals were booked months in advance.

         The prospects are encouraging for the industry. The occupation rate in Algarve in the months of July and August - the time chosen by the majority of the Portuguese for holidays - should reach 100%, and with this, prices will also increase. The guarantee is given to the i by the chairman of the Algarve Association of Hotels and Tourist Enterprises (AHETA). Elidérico Viegas recalls that the domestic market ranks second in the ranking of the occupation. Only the British are in front of us.

This scenario has been repeated in previous years, even at a time of crisis. "There was a real rush to housing at that time for hotels and apartments, and in the years of crisis the search was slowing down." The euphoria, however, is especially evident in the last fortnight of July and the first half of August.

Faced with this high demand it is not surprising that many of the supply is already depleted despite rising prices. "Surprisingly, the values continue to rise against the prices charged last year. This year we are seeing a rise in the order of 2 to 3% and even then, the demand does not stop, "says the person in charge.

Sofia Ferreira, a real estate developer operating in the Tavira area, corroborates the trend. "Many of the houses are already depleted because the Sotavento area has been experiencing a large increase in demand in recent years," he says. Still, the person in charge admits that they can exist punctually real estate with a free week for those months. "Everything depends on the prices that the Portuguese are willing to pay," he explains.

Also the real estate developer recognizes a price increase for this year. And gives examples: in their area, prices range from 700 to 750 euros per week in Santa Luzia for a T2, and 650 and 700 euros in Cabanas de Tavira. "These are values that were unthinkable years ago. That happened from about four years ago, "he says. For the city itself, the offer consists mainly of hotel units and there are more varied prices.One thing the two officials have no doubts: the best deals are already closed and were those that were booked several months in advance.

The i knows that many Portuguese to get lower values are already looking for rooms to spend holidays. This sort of renting provides some response to a niche market or a specific demand, especially among the younger ones. In fact, the appearance of this type of offer comes following the success that the local accommodation has had in the Portuguese market.

Apartaments with higher demand

Elidérico Viegas guarantees, however, that the prices are varied. There are deals for all pockets - it only depends on the area and the type of establishment. And remember that within the same categories there are significantly different prices.

The choice obviously depends a lot on the household. "Those who go to the Algarve on vacation are mainly families and most prefer apartments, which is natural because they want to be together and, above all, because it is more economical, since they can do all or only some meals in this space" . Those looking for hotels, according to Elidérico Viegas, are mostly couples.

Also the prices differ with the quantity of the offer. This means that the areas with the most beds are usually more affordable and have a lower rating, attracting people with lower purchasing power. In areas where there are fewer beds there is a tendency for prices to rise. And the president of AHETA gives the example of Carvoeiro, Quinta do Lago and Vale do Lobo that, "naturally, have higher prices", reveals to the i.

More expensive places

The area of Quarteira and Albufeira are at the top of the list of Portuguese cities with the leases of more expensive houses, according to the website Holidu. The average price per night is 180 euros in high season. Faro and Lagos appear next, with 161 euros and 151 euros, respectively, per night. However the five cheapest cities to spend these summer holidays offer possibilities of varied landscapes. They are Ponta Delgada, for 80 euros; Funchal, for almost 100 euros; Porto, for approximately 112 euros; Sesimbra, for just over 115 euros, and Tavira, for 130. Lisbon, Portimão and Porto Santo are in the middle of the table, with values ranging from 132 to almost 140 euros. After all, a stay in Portugal costs 140 euros on average.

Good deals

But this increase in demand also has another side of the coin. HomeAway.com, one of the world's leading vacation rentals online - has more than 590,000 listings in 143 countries - analyzed the profits of homeowners announcing their accommodations on this platform and came to the conclusion that the municipality of Loulé was the one where the owners obtained a bigger quarterly profit with the reservation of their holiday accommodation: more than 14 thousand euros."

The typology of the accommodation, which is characterized by spacious villas or apartments almost always with views, among other equipment, swimming pool and almost immediate proximity to the beach, determine higher prices, which brings a greater profit to the owner" says the platform.

Also Carvoeiro (13150 euros) and Vilamoura (11739) were the ones that obtained greater profits, because they are localities that have larger housing and where the price per night is higher.