The rise of premium villas and apartments for renovation in Portugal

Luxury real estate in Portugal is not only about brand-new homes. For those seeking a property with character and potential, renovation offers a unique path to a dream residence. Across the country, premium properties are waiting for a new owner to breathe new life into them. Some require minor refurbishments, while others need a full restoration to revive the charm and sophistication they once held—adapted to the tastes and needs of today’s owners or investors.

According to the latest data from idealista, the supply of luxury houses to buy and renovate in Portugal has more than doubled over the past year. This expansion gives high-net-worth families and investors a broader selection of premium properties with significant potential for value appreciation.

In the last quarter ending in October, more than 1,000 luxury houses for renovation were on the market in Portugal—more than twice as many as in the same period the previous year. These homes, all priced above €1 million, vary widely in style, location, and condition, requiring anything from minor refurbishment to comprehensive restoration.

It is immediately apparent that the vast majority of these premium properties are villas, which account for nearly 80% of the total. High-end apartments are far fewer, with just over 200 available for purchase and renovation.

idealista’s data further shows that both villa and apartment stock more than doubled over the past year—particularly apartments, which nearly tripled in number.

This surge in supply has eased demand nationwide, reducing pressure by around 30% for both property types. Wealthy families and investors remain keenly interested in luxury properties, but today their attention is spread across a much larger market.

Interestingly, this market dynamic has had differing effects on prices. Luxury villas to renovate maintained a national average price of €1,700,000 over the past year, while luxury apartments increased by roughly 7%, reaching €1,500,000.

Where to find luxury homes to renovate in Portugal?

Those in search of luxury villas to renovate now have significantly more options than a year ago, with stock rising both nationally and across districts and islands. In Faro and on Madeira, the supply of these properties quadrupled, while in Lisbon it doubled and in Porto it increased by 33%.

Despite this growth, the supply of premium villas with renovation potential remains concentrated in just eight districts and islands. Lisbon leads with 321 properties, followed by Faro (268), Porto (80), Setúbal (69), and Madeira (50). Leiria, Braga, and Viana do Castelo each have fewer than twenty such homes on the luxury market, according to Idealista’s data.

The expanded availability of luxury villas has dispersed demand, resulting in a marked reduction in pressure across all analysed locations—particularly on Madeira (-79%), Leiria (-66%), and Braga (-59%). In Lisbon and Porto, the easing of demand was more modest, at -20% and -34% respectively.

Over the past year, prices for premium villas to renovate varied by district, rising in three areas—most notably Leiria (+34%)—and falling in four, with the steepest decline in Braga (-14%). The most expensive of these properties are in Faro, with a average price of €1,900,000 in the last quarter, followed by Lisbon (€1,850,000). The most affordable luxury villas to renovate are in Braga (€1,295,000).

Luxury apartments to renovate have also seen an increase in supply over the past year, though growth has been significant in only four districts and islands: Faro, Lisbon, Madeira, and Porto. Lisbon offers the largest selection (102), followed by Porto (52).

As with villas, premium apartments for sale and renovation have experienced a reduction in demand pressure due to the expanded supply in Lisbon, Porto, and Faro. On Madeira, demand remained steady even though stock doubled, according to the data.

Average prices for luxury apartments to renovate range from €1,450,000 in Faro—after a 55% decline in a year—to €1,525,000 in Lisbon, following a 17% annual increase.

All of these luxurious properties offer the potential for significant value appreciation. With full renovation or selective upgrades—be it in the living room, kitchen, bedrooms, bathrooms, or even the garden and pool—these homes can be transformed into true dream residences, combining classic charm with modern luxury.