Portugal continues to shine as one of the world’s most attractive destinations for luxury property, thanks to its quality of life, safety, mild climate, and political stability. According to Miguel Poisson, CEO of Portugal Sotheby’s International Realty, the market is evolving: “The most sought-after homes are those that combine distinctive design, sustainability, technology, and personalised services. A good postcode is no longer enough — privacy, unobstructed views, and a unique experience are essential.”
Portuguese buyers lead the market
Portuguese clients now account for around 50% of Sotheby’s transactions, consolidating their position alongside international buyers, particularly Americans, Britons, and Brazilians. Emerging interest is also coming from Germans, as well as investors from the Middle East and Asia, mainly focused on ultra-luxury properties and branded residences.
Prime locations and emerging destinations
Traditional hotspots — Lisbon, the Cascais coastline, Porto, the Algarve, and Madeira — continue to dominate the luxury market. However, new destinations such as Comporta and Melides are redefining luxury in Portugal, offering exclusivity, sustainability, and a close connection with nature. In Lisbon, regeneration areas such as Alcântara, Marvila, and Beato are attracting growing interest, while in Porto, Foz, Nevogilde, and Boavista remain strong.
Market trends and performance
2025 has been a strong year for Sotheby’s: a 34% increase in transactions and a 40% rise in revenue in the first half, compared to 2024. Limited supply and strong domestic and international demand are driving consistent property appreciation. Prime areas continue to lead, while emerging regions see growing activity, often linked to branded residences and exclusive projects.
The role of technology and AI
Luxury property brokerage is evolving. Poisson emphasises that “it’s not enough to simply present properties; a highly personalised consultancy service is essential to turn a purchase into a complete experience.” Technology and AI are increasingly important in data analysis, pricing strategies, and client segmentation, but human relationships, trust, and discretion remain the differentiating factors.
The ultra-luxury segment
Portugal is seeing the emergence of an ultra-luxury segment, characterised by unique architectural design, full integration with nature, personalised services, and state-of-the-art technology. Many of these properties are branded residences, offering not just a home but a complete lifestyle.
Portuguese investors remain strong
Local buyers continue to invest in high-quality, sustainable properties that provide both a refuge and a solid asset. Villas with gardens and pools, as well as penthouses with unobstructed views, are in high demand, while historic palaces remain a niche interest.
Looking ahead
The future of Portugal’s luxury property market will be shaped by sustainability, technological integration, and experiences that combine authenticity, well-being, and connection to the natural environment. Even with global uncertainties, Portugal remains a safe haven for families and investors alike, reinforcing its position as a top-tier destination for luxury real estate.
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