The luxury homes segment in Portugal has grown dramatically in recent years. Therefore, the country is at the top of the list of investors from all over the world.
We are here to help you understand more about this valued market and the factors that led the Portuguese country to appear prominent in this sector. Scroll down to find out how the luxury real estate market works in the Lusitan Lands.
Are there luxury houses in Portugal?
In recent years, this type of investment has become one of the main drivers of the Portuguese economy. The high-end real estate market moves billions of euros annually.
Since 2015, the country has seen massive growth in foreign investment in luxury homes, attracted by the quality of life and prices that, at the time, were much lower than in the main global markets.
How about luxury condos?
There are also luxury condominiums in Portugal attracting those interested in the concept of living in a resort, offering residents various facilities, such as golf courses, swimming pools, cinema rooms, and other perks.
The largest concentration of this type of development is in the Algarve, the sunny southern coast of Portugal. There, where the beaches are the main highlight, luxury homes are in high demand and there are cases where the “cheapest” houses cost around 3 million euros.
What are luxury houses like in Portugal?
There are projects for all tastes – and budgets!
From traditional apartments, such as penthouses, mansions in cities, historic mansions, as well as farms. As the country has a strong tradition in wine production, there are even properties that offer a private winery for buyers – THAT’S COOL!
This luxury homes market in Portugal is quite dynamic, with high demand and a very high average price.
Best cities to invest in luxury homes in Portugal
As we are talking about a relatively small country, the luxury homes market in Portugal is quite concentrated. The districts that have the greatest number of offers are Lisbon, Porto, and Faro (in the Algarve). Eight of every ten luxury homes for sale in the country are in these cities.
In addition to concentrating a greater amount of properties, these locations are also those that offer the best facilities for residents with a lot of money – such as international airports and extensive commerce. This is also why Lisbon, Porto, and Faro are the best cities to invest in any real estate business.
Also noteworthy is the city of Cascais, in the Lisbon metropolitan area. The municipality is a much sought-after destination among the richest, as it offers more tranquility than Lisbon, but without being far from the busy life of the Portuguese capital.
How much does it cost to buy luxury houses in Portugal?
Before the “boom” experienced by Portugal in the high-end real estate market, luxury homes started at 500 thousand euros.
Today, with the market very heated and a high demand, prices have increased a lot. Thus, we can say that the market has established the 1 million euro mark as the initial value of most properties. In 2023, a luxury home in Portugal sold for an average price of 1.7 million euros.
To give you an idea of what this represents, high-end properties in Lisbon are more expensive than in Dubai, a famous destination for investors and the ultra-rich.
How to find luxury homes in Portugal?
As it is a very exclusive segment, the best way is with the help of specialized professionals. This way, you can find the best offers and receive all the necessary bureaucratic support to make the best deal.
There are two main possibilities:
- Specialized consultancy in the luxury market;
- Traditional real estate.
Each offers advantages for different types of buyers, whether a property is used as an investment asset or intended for housing. And that will be only up to you to decide.
Should you search alone or use a service?
This is the best option, especially if you don’t know the Portuguese real estate market very well. With a personalized service that is closer to you, and can help bridge the gap between what you want and the market, so that you can find your dream home faster and without a hassle.
In short, consultancies are the best allies of foreign investors.
And if that’s your case, get in touch with us to set up a meeting with our team of experts. See you soon!