The uncertain climate marked by rising interest rates and high inflation is to shaking the luxury residential markets around the world, including Portugal. This is because luxury homes in the Algarve continued to increase in value by 12.3% in 2023 compared to the previous year, this being the fourth biggest increase among the 100 cities around the world analysed by Knight Frank.

The Verdelago luxury resort in the Algarve opened its doors in the summer of 2023.

The historic center of Porto will soon have “a new gastronomic and cultural center”. This is Time Out Market Porto, located at the São Bento train station, which will bring together 14 restaurants, two bars and even cultural experiences. It will open to the public in May 2024.

For the first time in almost two decades, the Vale do Lobo resort is preparing to launch a “new real estate product in plan”. There will be apartments and semi-detached houses in the Vale Real area, also aimed at the “new, more demanding generation of visitors and owners”.

Renting a house in Portugal continues to be an option for many households, given the flexibility it presents, along with the lower initial investment required compared to purchasing a home. However, rental prices continue to become much more expensive in large urban centers, putting pressure on salaries.

Portugal continues to be an attractive country to live in, as well as invest in, despite the uncertain economic and political context. But the lack of homes for sale is a structural problem with no end in sight, as new home construction is not keeping up with demand in the country.