Portugal’s Luxury Property Market Surges in 2025

Portugal’s luxury real estate sector has seen exceptional performance in 2025, reinforcing its reputation as one of Europe’s most attractive high-end property markets. 

In the first quarter of the year, property prices rose by 15.2% compared with the same period in 2024, placing the country at the top of the European Union rankings for real estate growth and well above the EU average of 5.1%.

This growth reflects strong market fundamentals, sustained interest from international buyers, and limited availability of premium properties.

Demand has remained consistent across Portugal’s prime locations, from Lisbon’s historic avenues to the Algarve’s Golden Triangle, as well as increasingly popular destinations such as Comporta, the Silver Coast, and Sintra. 

Sotheby’s International Realty reports a 34% increase in transaction volumes in the first five months of 2025 compared to the same period last year. Among international buyers, British investors account for 11%, Americans 9%, and Brazilians 6%. 

Paul Stannard, Chairman and Founder of Portugal Pathways and the Portugal Investment Owners Club, said:

“These figures underline Portugal’s global appeal to high-net-worth individuals seeking both an investment opportunity and an exceptional place to live.

“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.”

For more detailed insights into the latest property hotspots in Portugal, register for Portugal Pathways' upcoming webinar, 'Investing in Luxury New Homes in Portugal,' on August 26th at 4:00 PM Lisbon Time.

New developments in the most sought-after areas have seen rapid sales activity. In the Algarve’s Vale do Lobo resort, for example, a new collection of branded residences has already sold close to half of its units within weeks of being launched. 

This speed of absorption is becoming more common in the luxury segment, where high-quality, well-located properties are in increasingly short supply.

Lifestyle factors are also playing a greater role in buyer decision-making. According to Idealista, demand for properties with outdoor features such as private gardens and swimming pools was 15% higher than for properties without them in the three months to May 2025. 

In the Faro district, this preference was particularly strong, with demand for homes including these amenities reaching 79% above the average for properties without them. 

Market projections indicate that the upward trajectory is expected to continue, albeit at a more moderate pace than the double-digit growth seen recently. Analysts at Property Market-Index forecast an 8.9% rise in property prices over the 12 months to August 2026. 

This anticipated growth is supported by sustained demand from international investors, growing interest from remote workers and lifestyle-driven buyers, and limited availability of high-quality stock in premium coastal and urban areas.

As 2025 progresses, competition for prime properties is expected to remain strong. From waterfront villas in the Algarve to contemporary designs in Comporta and historic townhouses in Lisbon’s Chiado district, the opportunities in Portugal’s high-end market continue to attract a diverse international audience. 

With sustained interest, constrained supply, and a market supported by strong fundamentals, Portugal’s luxury real estate sector remains well-positioned for continued success.

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For more detailed insights into the latest property hotspots in Portugal, register for Portugal Pathways' upcoming webinar, 'Investing in Luxury New Homes in Portugal,' taking place on August 26th at 4:00 PM Lisbon Time.

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About Portugal Pathways

Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.

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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Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.

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