Portugal’s luxury property demand is spreading well beyond its traditional hotspots

Speaking on a panel at the Portugal Investment Forum in Quinta do Lago, Obolonska said buyers are also far more selective than they used to be.

Five to ten years ago, she explained, interest centred on Cascais, Lisbon, the Algarve and other premium locations. Those areas still attract strong demand, but “we see that the demand is spread across so many other regions and locations”, she said.

Vila Nova de Gaia, the Silver Coast, Comporta and Funchal are all growing in popularity. Obolonska said buyers, including investors, now “value aspects such as privacy, such as having more space”.

Expectations of the property itself have changed too. “It’s no longer just about buying a beautiful holiday home,” she said. “It’s about purchasing a property that will be sustainable, that will include energy sustainability features.”

She added that Portuguese developers are responding to that demand, calling the shift “really noticeable and very positive”.

Obolonska worked on Golden Visa-related properties before the new legislation came into force and now focuses on the luxury and premium segments. She also addressed how the market works in practice.

Nearly a third of properties are understood to be sold off-market, a figure she agreed with. Obolonska described Portugal as “a bit more opaque” than the US, where listings sit in a centralised system. She said new developments often launch discreetly, with the best units, such as penthouses and those with the best views, selling at that early stage.

On whether international buyers are pushing up prices, she said “it is a reality, but it’s also more complex than that”.

She pointed to “a huge housing supply crisis, especially in the more affordable mid-market segment”. Within the luxury and premium segments, she said, “there is a choice”, and “the biggest crisis that we can see today and the issue of supply is exactly within more affordable living”.

Growth has long been concentrated along the coast and in the Lisbon and Porto metropolitan areas. Obolonska said it would be “a great opportunity to try to spread this growth across the whole country”, adding that employment would need to be created first in inland regions.

To explore luxury off-plan and off-market new homes in Portugal, arrange a free discovery call with Portugal Pathways.

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