The latest Portuguese housing market data highlights a continuing surge in demand and rising prices for premium properties — a trend that foreign buyers should take note of. According to the May 2025 Portuguese Housing Market Survey, published jointly by RICS and Confidencial Imobiliário (Ci), the country has now seen six consecutive months of positive new buyer enquiries, signalling robust interest in Portuguese real estate, especially when it comes to luxury homes.
Why Portugal’s luxury property market is so attractive right now
The survey reveals that strong momentum in house prices continues, with the price growth indicator reaching +30% in May, up from +28% in April. This positive trajectory is expected to last throughout the rest of the year and into 2026.
Alda Filipe, Regional Director and Partner at Kronos Homes, explains the core driver: "The significant supply and demand imbalance in many areas of Portugal means there remains an unmet need for new homes, especially luxury properties in prime locations like the Algarve."
With such strong price appreciation, Portuguese real estate is becoming increasingly appealing to international investors and homebuyers alike. They are attracted by a combination of security, market stability, and excellent prospects for capital growth.
Spotlight on The Residences Vale do Lobo — nearly half sold in weeks
A prime example of this dynamic is the exclusive new development at Vale do Lobo in the Algarve. The Residences Vale do Lobo, a limited collection of branded townhouses, apartments, and linked villas, has captured attention with its exceptional setting beside the resort’s famous Royal Golf Course.
Just weeks after its launch last month, almost 50% of the development has already been sold — a clear sign of the appetite for luxury homes in this prestigious resort.
These sophisticated homes offer buyers a unique blend of high-end investment potential alongside the lifestyle benefits Vale do Lobo is renowned for, including:
- Access to two championship 18-hole golf courses
- Tennis Academy
- Royal Spa and Parque do Golfe wellness facilities
- Newly enhanced sporting, dining, and leisure options
Buyers can expect beautifully designed properties with private and communal swimming pools, terraces, and landscaped gardens — all within a prime coastal location.
Why now is a great time to buy
The Algarve continues to be a hotspot for international buyers seeking a luxury lifestyle with excellent investment returns. The scarcity of new homes combined with increasing prices means opportunities like The Residences Vale do Lobo are rare and highly sought after.
Whether you’re looking for a primary residence, a holiday home, or a strategic investment, the Portuguese luxury property market is delivering strong value and growth prospects.
As Alda Filipe summarises: “Even accounting for the current strong market conditions, we are delighted with how fast The Residences Vale do Lobo are selling. Their prime location, lifestyle offering, and solid investment prospects have struck a chord with discerning buyers around the globe.”
Ready to invest in luxury property in Portugal?
If you’re looking to secure your place in Portugal’s booming luxury property market, now is the ideal time to act. Whether you're after a stylish apartment, a contemporary villa, or a home in a top-tier resort like Vale do Lobo, demand is high and quality listings are moving fast.
Explore the latest luxury properties for sale in Portugal on idealista and see what’s currently available in sought-after regions like the Algarve, Lisbon, and Comporta. With the right property, you’ll not only enjoy an exceptional lifestyle but also benefit from long-term value in one of Europe’s most desirable real estate markets.
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