Which areas in Portugal are popular for luxury home buyers?
Portugal is increasingly popular among luxury home buyers, with top regions being the Algarve, Lisbon, and Cascais. The Algarve is renowned for its natural beauty, splendid beaches, and golf resorts, making it a favourite among international buyers, especially from the UK and Ireland. In recent years, Lisbon's charm has captivated American and Brazilian investors, as it balances historic allure with modern conveniences and vibrant culture. The buzz around these areas indicates a strong upward trend in luxury property investments, with the expectation that Portugal will attract even more high-net-worth individuals by 2028. Key attractions include a relaxed lifestyle, favourable climate, and a diverse selection of upscale properties, from modern apartments to stunning villas. Furthermore, areas like Cascais offer proximity to both city life and the stunning coastline, adding to their appeal. The outlook for these locations is robust, with predictions of continued investment growth, positioning them as desirable spots for luxury real estate. Potential buyers will find a rich variety of homes catering to different tastes, often in well-established communities with excellent amenities. Explore these regions and discover unique investment opportunities that align perfectly with your lifestyle goals. Connect with us to find your dream home in Portugal!
This is a conclusion presented by Knight Frank's 'The Wealth Report 2024', which places Portugal among the 10 preferred countries to buy luxury homes in 2024.
International investors were asked in this study about the countries in which they would probably buy a new house in 2024. They indicated that there is a 3.8% probability of buying luxury houses in Portugal, placing Portugal in ninth position in a ranking that has 10 countries.
Buyers from the United Kingdom are most likely to buy a new home this year (17.7%), followed by the USA (9.8%) and France (7.2%).
The Knight Frank study predicts an increase in international investors, with a net worth equal to or greater than 30 million dollars. In 2023, 800 luxury housing investors were registered, 3% more than the previous year. By 2028, the outlook points to Portugal attracting a thousand investors, which represents a growth of 25% compared to last year.
The study shows that the Algarve is most sought after by the English, Irish, and northern European markets. The Lisbon and Cascais market is seeing an increase in demand from American and Brazilian investors, according to Alex Koch de Gooreynd, responsible for the Swiss, Austrian and Portuguese markets at Knight Frank, cited by Jornal Económico.
Prices of luxury homes in the Algarve rose 12.3% in 2023 compared to the previous year, the fourth biggest increase among the 100 cities analysed. In Porto, prices rose by 5% and in Lisbon by 2.2%. However, the high cost of housing in these regions is unlikely to influence demand from wealthy foreign investors, with demand even expected to grow this year.
