The secret world of Portugal's ultra-luxury property market

The premium and ultra-luxury real estate market in Portugal continues to attract many buyers and investors. A segment of the residential sector that has learned to dodge unexpected crises – the pandemic, rising interest rates, armed conflicts, high construction costs, the end of programmes like the golden visas, etc. – and has managed to stay on the radar despite the high prices. Privacy, discretion, and exclusivity are non-negotiable requirements for those seeking this type of property. Additionally, the way business is conducted with luxury homes for sale in Portugal is a world full of secrets and strategies, which we now help to uncover.

How are exclusive properties sold?

“There are several reasons why owners choose to sell their properties discreetly. One of the main factors is security and privacy, especially when the properties contain valuable artworks, furniture, or are inhabited by publicly known individuals. Additionally, many believe that an exclusive property can be negotiated at a higher price or with more selectivity if sold this way,” says Joana Branquinho, founder and CEO of ORIA Real Estate Advisors, in an interview with Idealista/news.

In the luxury and ultra-luxury segment, "both sellers and buyers value privacy, avoiding the public exposure of the property, the transaction value, or even the fact that they are selling the property," she adds.

Daniela Rebouta, Sales Director at Engel & Völkers Lisboa, Oeiras, and Setúbal, explains that the decision to sell properties in this manner is due to owners wanting “privacy, discretion, and exclusivity.” While this option is “understandable in various contexts,” it “ends up limiting the visibility and reach of the property.”

“There are several reasons why owners choose to sell their properties discreetly. One of the main factors is security and privacy, especially when the properties contain valuable artworks, furniture, or are inhabited by publicly known individuals.”
Joana Branquinho, CEO of ORIA Real Estate Advisors

Meanwhile, João Cília, CEO of Porta da Frente Christie’s, focuses on the importance of confidentiality. “These are personal decisions aimed at reducing the exposure of the owners themselves,” he explains, noting that in some situations, “in highly exclusive properties or projects,” the sale is typically carried out in one-on-one meetings with highly qualified clients, often with a history of previous transactions with Porta da Frente.

Filipe Lourenço, CEO of Private Luxury Real Estate (PLRE), offers a slightly different opinion, describing this as “one of the big myths of the luxury real estate market in Portugal,” as the number of owners opting for this approach for privacy reasons is minimal.

“Indeed, there is a disconnect in the Portuguese market between a niche of truly ‘high-end’ properties and the endless number of real estate agencies that claim to be in the luxury segment. As a defensive strategy, many owners impose on certain brands and/or consultants that their property remains ‘off-market,’ but this is not even suggested to others, such as PLRE. It’s evident that ‘off-market’ arises from the lack of alignment and even credibility of consultants and networks to attract exclusive homes,” he reveals.

Filipe Lourenço, CEO of PLRE; Daniela Rebouta, Sales Director at E&V Lisboa, Oeiras, and Setúbal; Joana Branquinho, CEO of ORIA Real Estate Advisors; João Cília, CEO of Porta da Frente Christie’s. Freepik | photos provided by the real estate agencies

Who decides the best way to sell a property: the seller or the agent?

“It’s always the owner who judges and defines this aspect, based on the reputation, credibility, and alignment between the property and the real estate agency brand they are working with,” says Filipe Lourenço. João Cília notes that “both situations can happen,” but the final decision is always made by the owner. Daniela Rebouta echoes this: “The final decision is always made by the owner, but as real estate agents, we always advise on the best marketing strategy for the property.”

Joana Branquinho believes it’s a decision that should be strategic and made together. “The client can express their preference, but it’s up to the consultant to assess whether that’s the best approach for that specific property and adapt the best plan,” she says, emphasising that not always is the ‘off-market’ sale the most effective and it can even hinder the sales process: “Our role is to advise the owner based on the property profile, market conditions, and the client’s goals.”

Is privacy really the key to the deal?

“Without a doubt, it’s the big advantage of selling this way. However, there are no guarantees of a sale. The success of a transaction depends on factors such as the property’s exclusivity and quality, a well-adjusted price, and, most importantly, the experience and contacts of the real estate consultant working in that segment. Having a solid network of contacts and direct access to potential buyers and selected partners is essential to achieving a good outcome,” says the CEO of ORIA Real Estate Advisors.

Privacy "can be an important factor; however, for some properties, it can limit the sale and lead to longer sale times, as the properties are no longer advertised, which would usually enhance transactions. At Engel & Völkers, when we have an ‘off-market’ property, we share it within our global database, as the brand is present in over 35 countries and has an extensive network of contacts, which may include the ideal client for the property,” adds Daniela Rebouta.

"Privacy can be an important factor; however, for some properties, it can limit the sale and lead to longer sale times. At Engel & Völkers, when we have an ‘off-market’ property, we share it within our global database, as the brand is present in over 35 countries and has an extensive network of contacts, which may include the ideal client for the property."
Daniela Rebouta, Sales Director at E&V Lisboa, Oeiras, and Setúbal

Filipe Lourenço, CEO of PLRE, recognises that “the key to the business is the right networking and know-how,” and while “confidentiality, discretion, and privacy are assured,” he believes that the “probability of selling an ‘off-market’ property drastically decreases, as the potential client market is initially limited.”

“Whenever we advise on marketing in this format, it’s because we believe that buyer clients will value the exclusivity they’re given in this type of sale,” adds João Cília. 

This historic mansion in Lisbon is listed for sale at PLRE for 34 million euros Private Luxury Real Estate (PLRE)

What are these properties, and how much can they cost?

The CEO of Porta da Frente Christie’s reminds us that these are "unique properties and, as such, have a high value." Moreover, due to their characteristics and value, they can "attract detrimental media attention if publicised and their value becomes known." "These are also properties where potential buyers prefer to maintain a high level of discretion and feel they are gaining access to something exclusive, which cannot be purchased by just any client," he explains.

The expert also points out that value is not the only relevant factor when marketing such assets. Some properties, “due to their history, iconic location, or affiliation with a prominent company or family,” for example, may benefit from being presented only “to highly qualified clients.”

Joana Branquinho reiterates the idea that these are “truly unique properties.” She explains: “What sets them apart can be their privileged location, exceptional architecture, sophisticated interior design, or the history behind the property. Additionally, the owners are often public figures who want total discretion. These homes have a value that goes beyond the market price, involving status and exclusivity.”

The CEO of ORIA Real Estate Advisors believes that the sale price can influence the decision to keep a property in this position, but there are other important factors to consider, such as “the owner’s need for privacy, the uniqueness of the property, and the market strategy chosen.” “Not always is ‘off-market’ advantageous, so we evaluate each case to ensure the best approach,” she adds.

"At PLRE, we do profiling and give assertive exposure to the property, thanks to our proper networking. This means that many high-profile clients only want to work with us on selling their luxury properties. (...) The property is not listed with several agencies, but only with the one that is suited to selling that specific product."
Filipe Lourenço, CEO of Private Luxury Real Estate

When asked about this topic – which homes these are and what distinguishes them from other equally luxurious properties for sale – Filipe Lourenço answers briefly and clearly: "Nothing distinguishes them. It is the owner who distinguishes agency A from B, making one list the property as ‘off-market’ and not the other."

"At PLRE, we do profiling and give assertive exposure to the property, thanks to our proper networking. This means that many high-profile clients only want to work with us on selling their luxury properties. We have a practice that has long been common in the US. The property is not listed with several agencies, but only with the one suited for selling that specific product," assures the expert.

A chalet in Sintra listed for sale at PLRE for 5.3 million euros. Private Luxury Real Estate (PLRE)

Who are the main luxury buyers in Portugal? 

So, who is actually buying these types of properties in Portugal? “Most buyers are foreigners, especially in the luxury and ultra-luxury segment,” says Joana Branquinho. But there are also Portuguese clients looking for this “level of exclusivity and discretion, both to sell and to buy.” “This market requires in-depth knowledge and sensitivity, as well as solid relationships and a personalised approach to work with this type of property,” concludes the head of ORIA Real Estate Advisors.

This view is largely shared by the other experts interviewed by idealista/news: “The potential clients for these types of properties are mainly foreigners looking for exclusivity, security, and quality of life, or Portuguese clients with significant purchasing power. And that’s precisely why limiting the exposure of these properties excludes real buyers and restricts access to the market,” says Daniela Rebouta, Sales Director at Engel & Völkers Lisboa, Oeiras, and Setúbal.

"The weight of foreign clients in the high-end luxury segment is very relevant; however, Portuguese buyers continue to be the nationality with the highest share in sales."
João Cília, CEO of Porta da Frente Christie’s

Filipe Lourenço, CEO of PLRE, mentions a 50/50 ratio between domestic and foreign clients, highlighting, among the foreigners, Americans, Brazilians, and citizens from Middle Eastern countries.

This is also a point raised by João Cília, who highlights the fact that there are as many foreign clients as Portuguese ones investing in this market segment, with the Portuguese also having the capacity to acquire exclusive, high-value properties. “The weight of foreign clients in the high-end luxury segment is very relevant; however, Portuguese buyers continue to be the nationality with the highest share in sales,” concludes the CEO of Porta da Frente Christie’s.