Santa Maria is no longer the Azores' cheap island, thanks to the pull of international flights

Santa Maria, the southernmost and geologically oldest island in the archipelago, has traditionally been the most affordable in the Azorean property market. That label is starting to become outdated: the increase in low-cost flight connections and the pull of its golden sand beaches, a rarity in a volcanic archipelago, are overheating the housing market in Vila do Porto, according to property sector sources.

From affordable island to booming market

Property portals now place the average price of housing in Vila do Porto on a clear upward path, with double-digit year-on-year rises in recent years, albeit starting from levels that until just a few years ago were still the lowest in the archipelago.

The airport, a historic engine now also a source of pressure

Santa Maria's airport, once a mandatory stopover for transatlantic flights, has regained prominence with the arrival of new low-cost routes connecting the island with mainland Europe. That tourism boost is translating into growing demand for housing for tourist accommodation, which competes with the supply intended for primary residence, according to estate agents consulted.

Golden beaches: the asset the Azores were missing

Unlike the rest of the archipelago, with its predominantly rocky coastline, Santa Maria has golden sand beaches such as São Lourenço, an attraction that has turned it into a sun-tourism destination unlike the other islands, and one that is driving investment in holiday housing.

Local families watching the cost of living rise

Wages on Santa Maria follow the general Azorean pattern, and the rise in purchase and rental prices is starting to worry local families, especially young people looking for their first home in Vila do Porto, according to municipal sources.

What the authorities are studying

The Vila do Porto Town Council and the Regional Government are reviewing the criteria for granting local accommodation licences and are considering strengthening public housing plans, aware that the island's new air and tourism appeal is here to stay.