Luxury homes for sale can be found in nearly every corner of Portugal. However, there are regions in the country that attract more interest than others, for various reasons. The latest data from idealista/data reveals that Lisbon and Setúbal are the most sought-after districts by those searching for properties priced above 1 million euros.
Although Lisbon, Porto, and Faro account for more than half of the available properties, every district and island in Portugal has at least one luxury home for sale. There has also been a growing number of properties priced above 1 million euros entering the market: by the end of 2024, over 21,000 properties were recorded, an increase of 23% compared to the previous year, marking the highest figure since 2019, according to idealista/data.
This trend has been accompanied by a significant interest in purchasing luxurious homes. While the demand growth has not been linear (tending to decrease towards the end of each year), in the final three months of 2024, the search for premium properties reached one of its highest levels in the past six years.
The highest demand for exclusive residences was recorded in the first three months of 2023, when the former socialist government of António Costa announced the end of golden visas for real estate investment as part of its "Mais Habitação" package. When the measure came into effect in October, there was a 10% annual decline and a nearly 22% quarterly drop.
Which areas of Portugal are most sought-after for buying luxury property?
The demand for luxury homes has not been uniform across the country. Some people value proximity to the sea and access to healthcare, education, and transport services, as well as more job opportunities. Others seek to live in a villa, with a pool and garden, away from major urban centres, or even in the countryside.
What stands out is that it is in Lisbon and Setúbal where the demand for luxurious homes is highest in Portugal – in fact, these two districts together account for nearly half of the national supply. Data from idealista/data suggests that both Portuguese citizens and foreign buyers interested in properties priced above 1 million euros prefer to live or invest in a second home near the bustling capital, where there is a greater supply of jobs, culture, and leisure – in addition to being closer to Lisbon’s international airport.
There is also a high demand for premium homes for sale on the island of São Miguel (Azores), in Leiria, and in Santarém, compared to other regions. These are quieter areas to live in, blending the reality of smaller towns with the tranquillity of nature. However, in these three districts, the supply of villas, apartments, or luxury estates for sale is much lower, with fewer than 500 properties available.
Demand for luxury homes by region
The map below shows data from Q4 2024 for luxury homes priced above 1 million euros. The highest demand is indicated in dark green and the lowest in light green.
The Porto district ranks in the middle of the table, attracting moderate interest from those searching for homes priced over 1 million euros. Here, demand may be dispersed among the more than 2,500 luxury properties for sale in the Invicta territory – especially as it is the third district with the most supply, after Lisbon and Faro.
Among the regions with the lowest demand for luxury homes at the end of 2024 are Faro and the island of Madeira. The same data reveals that demand in both areas has been declining in recent years, after reaching peak levels in Madeira at the end of 2021 and in Faro at the beginning of 2023. Visits to these more expensive homes may also be spread across the nearly 7,000 properties available on the market (more than 5,700 in Faro and over 1,200 in Madeira).
At the bottom of the table are the districts of Viana do Castelo and Portalegre, quieter places to live, whether near the sea or in the countryside. Here, the supply of luxury homes for sale is also small, with only 23 properties in Portalegre and 91 in Viana do Castelo at the end of last year.
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