How airlines are promoting tourist areas in Portugal

profound changes in national tourism. But the impact goes beyond travel—it directly affects the real estate market, especially in tourist areas such as the Algarve, Madeira, and the Azores. In this article, we analyze how more accessible air connectivity is driving demand for homes in these regions and creating new real estate investment opportunities.

The role of low-cost airlines in attracting tourists and residents

The operation of airlines such as Ryanair, EasyJet, Vueling, and Wizz Air has significantly increased the frequency of direct flights to Portugal from dozens of European cities. This has had two main effects:

• Greater regular tourist flow throughout the year, not just in the summer months.
• An increase in the number of foreigners buying second homes or even moving permanently to coastal and island areas.

With affordable and regular flights, places such as Faro, Ponta Delgada, Funchal, and Portimão have become more viable for those who want to work remotely, spend longer periods of time there, or invest in tourist rentals.

Regions with above-average appreciation

The impact of low-cost airlines is particularly evident in regions where access was previously more restricted or expensive:

• Algarve: Property appreciation in the areas of Lagos, Albufeira, and Tavira has been driven by consistent demand from European tourists.
• Azores: The increase in low-cost routes to islands such as São Miguel has promoted the renovation of properties for local tourism and extended stays.
• Madeira: With direct flights from several European cities, the real estate market in Funchal has seen growing demand for tourist apartments and permanent housing from foreigners.

According to data from Idealista and INE, sales and rental prices in these regions have grown above the national average, especially after the pandemic period.

Opportunities for real estate investors

• The confluence of sustainable tourism and easy air access has created ideal conditions for investment in properties with strong profitability potential. Among the opportunities, the following stand out:
• Short-term rentals (AL): Areas with high seasonal occupancy continue to offer good returns, especially if the property is well located and equipped.
• Investment in renovation: With growing demand, renovation projects in historic centers or coastal areas quickly increase in value.
• Second homes for foreigners: Many investors are looking for properties for their own use for part of the year, but which can also be rented out during the rest of the year.

Challenges and precautions

Despite the opportunities, there are challenges that investors should consider:

• Pressure on prices: Increased demand has already led to accelerated property appreciation in some areas, reducing the entry margin.
• Municipal regulations on local accommodation: Some cities have begun to limit new LA licenses to preserve the housing balance.
• Dependence on tourism: Changes in transportation policies or geopolitical events can affect tourist flows and, consequently, the return on investment.

Conclusion

The growth of low-cost airlines in Portugal has profoundly changed the tourism landscape and, as a result, the real estate market in the most sought-after regions. For attentive investors, this is a window of opportunity to acquire properties in locations with growing demand and enhanced accessibility. The key is to choose the right location, assess the risks, and invest in a property with strong appeal to the new tourist-resident profile.

Want to take advantage of the potential of tourist areas with strong appreciation? IR Group accompanies you from identifying the right property to completing your investment, with extensive know-how and customized solutions. Contact us and learn how to invest safely in Portugal's up-and-coming destinations.