New Developments vs Resale Villas for Sale in the Algarve – What’s Best for a Luxury Buyer?

Explore the pros and cons of new developments versus resale villas in the Algarve’s luxury market. Discover which option best suits your lifestyle and investment goals.

By LiveAlgarve on 4th April 2025 - 3-4 m. reading time 

For most people, buying a house is both daunting and exciting. The process can be long and confusing, especially when buyers want to be sure they’re making the right choice. When it comes to purchasing a luxury home in Portugal’s Algarve, many buyers find themselves deciding between investing in a new development or opting for a resale villa. Each option offers distinct advantages and considerations. This guide provides an in-depth look at both, supported by current market insights.

The Algarve region, particularly Lagos, has seen significant growth in the luxury real estate market. In 2025, the Portuguese property market is projected to expand by 5.8%, with areas like the Algarve leading this trend. This growth and strong start to this year is attracting both local and international investors seeking premium properties.

Both options can shape the next steps in your luxury home buying journey. Let’s explore.

New Developments in Lagos

Advantages:

• Modern Amenities and Construction Standards: New builds offer contemporary designs, energy-efficient systems and the latest technology, aligning with the luxury lifestyle sought by many buyers.​
• Customisation Potential: Purchasing off-plan allows buyers to influence design choices, finishes and layouts, tailoring the property to personal preferences.​
• Legal Guarantees: Portuguese legislation mandates a 10-year structural guarantee and a further 5-year guarantee for other aspects, providing assurance regarding structural integrity and quality.​

Considerations:

• Higher Initial Investment: New properties often come at a premium price due to modern features and customisation options.
• Construction Timelines: Buying off-plan involves waiting for the property to be built, which can extend the timeline before the property is ready for occupancy or rental.​
• Market Risk: There's a degree of uncertainty regarding the final product, as the completed property may differ from initial plans or expectations.​

Resale Villas in Lagos

Advantages:

• Established Locations: Resale properties are typically situated in well-developed neighbourhoods with mature infrastructure, offering immediate access to amenities and a sense of community.​
• Cost Efficiency: Depending on size and location, resale villas can be more affordable than new builds, allowing buyers to acquire larger properties or prime locations within their budget.​
• Immediate Availability: Purchasing a resale villa means the property is ready for immediate occupancy or rental, eliminating waiting periods associated with new constructions.​

Considerations:

• Potential Renovation Costs: Older properties may require updates or maintenance, leading to additional expenses to meet modern standards.​
• Variable Energy Efficiency: Resale villas might not adhere to current energy efficiency standards, potentially resulting in higher utility costs.​
• Limited Customisation: Renovating a resale property allows for some personalisation, but structural changes may be limited compared to designing a new build from scratch.​

Making an Informed Decision

Choosing between a new development and a resale villa in the Algarve depends on individual preferences, investment goals and lifestyle considerations. New builds offer modernity and customisation, while resale properties provide established settings and potential cost savings. It's essential to assess personal priorities and conduct thorough due diligence.​

For more detailed information on the luxury real estate market in Portugal, take a look at our curated selection of new developments and resale villas in Lagos.

For those looking to connect with like-minded investors and stay informed on global luxury trends, the World Luxury Chamber of Commerce offers valuable networking opportunities.