Poço da Alagoinha waterfalls drive demand for seasonal homes in Fajã Grande

A postcard landscape that draws buyers

The Poço da Alagoinha, also known as Poço da Ribeira do Ferreiro, is a series of waterfalls cascading over a wall of vegetation into a lagoon of clear water, in the area of Fajã Grande, in the municipality of Lajes das Flores. For years it was just an obligatory stop for hikers, but according to local estate agents the spot has become an explicit selling point in property listings in the area, which are now advertised as "a few minutes' walk from the most photographed waterfall in the Azores".

Few houses, high demand

Sources in the property sector say the number of homes for sale in Fajã Grande and the surrounding area can be counted on one hand at any given time, which has driven a sharp rise in prices per square metre over the past two years, according to estimates from property portals operating on the island. Buyers from Germany, France and the United States, many of them already familiar with the island from previous visits as tourists, account for a large share of recent transactions, according to the same agents.

The challenge of building near the reserve

The area's proximity to protected land within the Reserva da Biosfera das Flores, recognised by Unesco, limits the scope for expanding the housing stock through new construction, which, according to sources in the property sector, feeds the shortage and pushes up prices for the few traditional houses suitable for renovation that come onto the market. The handful of buildable plots outside the protected perimeter now account for most of the enquiries from non-resident buyers.

Impact on the local economy

Residents of Fajã Grande and Fajãzinha, the two parishes closest to Poço da Alagoinha, see this property interest as a way to slow the abandonment of family homes, though they also warn, according to sources in the tourism sector, that a growing share of these properties are being used for short-term holiday lets rather than as full-time residences, further reducing the supply for those who want to live in the area year-round.

Outlook for the coming months

With the peak hiking season approaching, estate agents consulted expect interest in buying property around the waterfalls to keep growing, particularly among buyers looking to combine remote work with nature. The shortage of developable land, however, will remain, according to sources in the sector, the main obstacle preventing that demand from translating into more completed transactions.