Portugal’s luxury real estate sector continued its upward trajectory in the second quarter of 2025, recording impressive growth in both revenue and investment value.
New data from Portugal Sotheby’s International Realty reveals a 31% year-on-year increase in revenue and a 34% rise in total business volume compared to the first four months of the year—clear signs that international demand remains a major force in the market.
According to the report, buyers from the United States have intensified their focus on Portugal, contributing to an 82% increase in the average transaction value for North American investors.
The preference for premium properties has further pushed up the market’s average sale price, which rose by 22% compared with the same period in 2024.
While the total number of transactions saw a slight dip of 6%, the overall value of properties sold continued to climb, indicating a market shift towards higher-quality, higher-value investments.
The report also highlights a new wave of international investors reshaping Portugal’s luxury landscape. Buyers in their 30s and 40s, particularly professionals from technology, finance, and digital entrepreneurship sectors, are playing an increasingly prominent role.
Paul Stannard, Chairman and Founder of Portugal Pathways and the Portugal Investment Owners Club, said: “Portugal’s luxury property market continues to benefit from long-term stability, a favourable climate, strong infrastructure, and a high quality of life.
"Portugal’s reputation for safety, combined with a competitive tax environment for certain residency categories, further strengthens its appeal as both a lifestyle choice and a strategic investment.
“Investor confidence really is at an all-time high, with an Ernst & Young (EY) report finding 84% of entrepreneurs surveyed plan to expand or establish operations in Portugal. Additionally, S&P have recently upgraded Portugal’s economic rating from ‘A’ to ‘A+’.”
This younger, globally minded demographic seeks not only prime locations and premium finishes but also modern features such as energy efficiency, integrated services, and sustainable construction.
Despite the rise in international capital, Portuguese buyers continue to account for a substantial share of the luxury property market—representing 54% of transactions nationwide.
Lisbon remains the top location, attracting 53% of domestic demand, followed by the Algarve (21%), Porto (12%), and Madeira (11%).
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About Portugal Investment Owners Club
The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.
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