Countryside, beach, or city: where are luxury buyers investing in Portugal?

Portugal remains a top destination for those looking to buy a luxury home. The most sought-after areas for high-net-worth families are municipalities near Lisbon and along the coast, allowing them to combine seaside living with the vibrancy of the city. However, those wishing to settle in the tranquillity of the countryside face very limited options due to a shortage of properties priced above €1 million.

All indications suggest that luxury homebuyers in Portugal seek premium properties that offer the best of both worlds: the charm of living near the beach alongside the many benefits of residing close to a major city, from healthcare services to a wide range of leisure activities.

This conclusion comes from an analysis of data from idealista/data, covering the three months leading up to February 2025. When it comes to luxury villas priced above €1 million, Oeiras and Lisbon see the highest demand. Interest in high-end apartments is also concentrated in municipalities surrounding the capital, including Sintra, Mafra, and Loures, followed by Lisbon itself.

Beyond Greater Lisbon, demand for luxury homes is focused along Portugal’s coastline, stretching from Minho to the Algarve, as well as the islands of São Miguel and Madeira—regions where these types of properties are more readily available. The municipality of Caminha stands out as the third most sought-after location for premium villas.

This in-depth geographical analysis reveals that inland municipalities have a very limited supply (fewer than 10 listed properties) or none at all. The scarcity of premium homes for sale in the countryside ultimately restricts choices for those seeking a secluded lifestyle surrounded by nature. Évora emerges as an exception, ranking sixth in demand for luxury villas and offering a balance between rural tranquillity and urban convenience.

Premium villas for sale are spread along the Portuguese coast

In Portugal, demand for premium villas far exceeds that for luxury apartments. This trend can be attributed to the greater availability of villas and their lower price per square metre, as we explain in this article.

A closer look at the premium villa market reveals that the highest number of listings in the last quarter (ending February 2025) were recorded in the municipalities of Cascais, Loulé, Lagos, Sintra, and Albufeira. These five locations—spread across Greater Lisbon and the Algarve—offer a perfect blend of beach and city living and together account for nearly half of the approximately 13,700 villas for sale across the 82 municipalities analysed (each with at least 10 listed properties). In Porto, 580 luxury villas were available for purchase, surpassing Lisbon’s total of 408.

The number of luxury apartments for sale nationwide is significantly lower, at around 7,300. Lisbon and Cascais alone account for 60% of this total, with listings concentrated in just 29 municipalities with a representative sample. Porto ranks third, with 760 premium apartments currently on the market, according to data from idealista/data.

While the stock of luxury apartments is heavily concentrated in Lisbon, Porto, and the Algarve, the availability of high-end villas for sale is more widespread—though still predominantly located along the coast and on the islands. This broader distribution provides more options for buyers looking to live by the beach, in a city, or a combination of both. On the other hand, both types of properties are scarce or virtually non-existent in inland areas, limiting choices for those seeking a countryside retreat.

Prices of luxury villas and apartments in Portugal

Buying a luxury villa in Portugal tends to be significantly more expensive than purchasing a high-end apartment. This is likely due to villas offering not only premium finishes and high energy efficiency but also larger spaces and exclusive amenities such as private pools, gardens, spas, and even home cinemas.

The most expensive luxury villas in the country are located in Ferreira do Zêzere, in the district of Santarém, where the median price reaches nearly €2.9 million. Following closely behind are the municipalities of Grândola (€2.6 million), Cascais (€2.4 million), and Lisbon (€2.3 million). In total, 16 of the 82 municipalities analysed have villas for sale with a median price exceeding €2 million.

In contrast, the average price of high-end apartments remains below this threshold across all 29 municipalities studied. Lagoa, in the Algarve, has the most expensive premium apartments, with a median price of nearly €1.9 million, followed by Cascais (€1.8 million) and Lisbon (€1.6 million).

The most affordable luxury villas on the market can be found in Santa Maria da Feira and Viana do Castelo, where prices hover around €1.2 million—though these locations are not among the most in demand. Meanwhile, Alcochete and Odivelas stand out for having the lowest median prices for luxury apartments, at around €1.1 million.