Traditionally recognised for its appeal as a second-home destination, the Algarve remains the region in Portugal leading the demand for properties for this purpose. It also provides the widest variety of locations, which allows it to attract a broad range of buyers, both domestic and international.
According to the Market Report Portugal 2025–2026 by Engel & Völkers, Quinta do Lago and Vale do Lobo stand out for their exclusivity, with 60% of purchases intended as second homes.
These areas mainly attract international buyers (80%), particularly from the UK and Ireland. Despite high prices, which can exceed €13,000 per m², most purchases are completed without bank financing.
In Vilamoura, Engel & Völkers recorded a price variation of more than 106.2% last year. This reflects a mix of premium properties, including villas with swimming pools and sea views, as well as apartments close to golf courses, which dominate demand for second homes and investment.
Meanwhile, Albufeira and Carvoeiro show a greater imbalance, favouring seasonal residential use. In these areas, 43% of purchases are for second homes and over 36% for investment, while primary and permanent residences account for a much smaller share, at just 21%.
Comporta and the Oeste: growing markets
Outside the Algarve, two emerging markets are gaining ground in the second-home segment: Comporta and the Oeste region. Factors such as a discreet architectural identity focused on understated luxury, structural scarcity due to environmental restrictions, and proximity to Lisbon all support demand in Comporta for second homes and investment. In Alcácer do Sal, transactions increased by 12.3% in 2025.
The Oeste is also seeing growing interest in properties intended as second homes, with 40% of purchases falling into this category. Its buyer profile is predominantly international (55%), with American, French and German buyers standing out. According to Engel & Völkers, the average price here is €3,103 per m².
Although it has a stronger component of permanent residential housing, Cascais also remains a market with significant weight in the second-home sector.
In a statement, Margarita Oltra, Regional Manager at Engel & Völkers, notes that “the second-home market in Portugal continues to demonstrate strong resilience. She highlights the Algarve, which remains “the main benchmark”, even as the country is currently seeing “growing momentum in areas such as Comporta and the Oeste, largely driven by buyers placing greater value on lifestyle”.
“This is a factor that is playing an increasingly important role when choosing the location for a second home. The growth of regions that serve as alternatives to the Algarve strengthens the country’s appeal among international buyers and further attracts domestic purchasers,” she concludes.
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