Portugal´s Luxury Real Estate Market

06 ago 2024 min de leitura

Portugal's Luxury Real Estate Market

Portugal has emerged as a prime destination for luxury real estate investors over the past decade. With its captivating blend of rich history, stunning landscapes, warm climate, and favorable economic conditions, the country offers an attractive proposition for high-net-worth individuals seeking both primary and secondary residences. The luxury real estate market in Portugal has experienced significant growth, driven by a combination of factors such as tax incentives, and the country’s increasing global profile.

Luxury properties are not restricted to palace-like estates with golden gates and acres of land…... A luxury property can come in the form of an apartment, a condominium a house or villa. The key aspects which determine a luxury property are its features and facilities, green areas, technologies, design, location and sustainability. Sunshine destinations continue to outperform other locations, according to a recent study. Prices in ‘sun’ destinations have risen by 4.7% compared to ski resorts at 3.3% and cities at 2.7%.

Speaking of sunshine, the Iberian Peninsula is one corner of the world which has skyrocketed in popularity in the last four years. The yearning for a better work-life balance and being able to spend quality time outdoors definitely has a part to play. But Portugal in particular, has always been an industry leading holiday destination. Not only are Europeans constantly flocking to this part of the world, it’s also gained traction from Americans, Canadians, South African’s, the Middle East and other parts of Asia hoping for an improved lifestyle. With this new wave of diversification and interest in long term living from people all over the world, the luxury sector has seen exponential growth, which is likely to be sustained.

Luxury homes in the Algarve in particular have experienced the 4th biggest price increase in the world. With an increase of 12.3% from 2022 to 2023, prices in Lisbon and Porto are also creeping up too. Despite the current uncertainty within the world, higher than ever interest rates and inflation also on the rise, this hasn’t seemed to rock the luxury real estate market.

So how is Portugal in keeping and exceeding these luxury market trends?

Location, location, location

Renowned for its stunning coastline, warm weather and golf courses, the Algarve is a magnet for luxury real estate investors looking for villas and exclusive resort-style living. Areas like Lagos, Quinta do Lago, Vale do Lobo, and Vilamoura offer top-notch amenities, drawing interest from affluent retirees and holiday home seekers.
Portugal also offers many favourable conditions to live such as a laidback lifestyle, friendly locals, safety, a rich cultural history and renowned wine and cuisine.

Lifestyle and amenities

Convenience is a less obvious marker for luxurious living, but nonetheless of upmost importance. Today’s buyer’s want it all and at the tip of their finger so having certain amenities nearby the property helps boost its value.

Portugal recently became ‘the best golf destination in the world’, proving that their leisure offerings are competitive. Beaches in Portugal are also amongst the most beautiful in the world and also consistently win awards. Other amenities that contribute to a property's value are access to state of the art gyms, spas and pools, all of which Portugal has in abundance.

Technology

There is a growing demand for environmentally friendly and technologically advanced properties. Developers are increasingly incorporating green building practices and smart home technologies to meet this demand.

Sustainability is key!

Millennials are paving the way for market trends, but they’re also progressively eco-conscious. Portugal has made significant progress in renewable power from 27% in 2005 to 54% in 2007. Their use of renewable energy and a cleaner way of living attracts many overseas buyers to the country. Eco-friendly resorts which combine sentient living with luxurious features are on the rise and increased access to energy-efficient appliances which don’t compromise on efficiency allow new and old properties to meet the requirements of the modern buyer. Architects and construction companies also often use eco-friendly, alternative materials when designing and creating new buildings.

Remote Working Influence

The rise of remote working, accelerated by the COVID-19 pandemic, has made Portugal more attractive to international buyers who seek a high quality of life while working remotely. This trend is expected to continue, driving demand for luxury homes in scenic and tranquil locations.

Invest in a Luxury Condominium

As lifestyle and amenities are one of the current, key luxury real estate market trends, a condominium is a great way to invest, and can sometimes have a lower price tag. Luxury condominiums will have luxury facilities such as pools, spas and gyms which are shared within the complex. Your own condo will be completely private. Condominiums are perfect for those who like everything taken care of and value safety as they’re secure and often have additional services such as security guards.