In the second four months of 2025, the luxury real estate sector in Portugal stood out with significant growth. THE Portugal Sotheby’s International Realty reported a 31% increase in turnover compared to the same period of the previous year and a 34% growth in total business volume compared to the first four months of 2025.
International demand, especially from the United States, Brazil and the United Kingdom, has redefined the investor profile and expanded the areas of interest in the country.
Os American investors, in particular, increased their focus on Portugal, with an 82% growth in the average value per transactionfocusing on T2 apartments and T4 houses in the premium areas of Lisbon and the Algarve.
Os Brazilians also stood out as international buyers, with a preference for T3 apartments in central areas of Lisbon.
Both groups of investors are motivated by the acquisition of second homes and the lifestyle that Portugal offers. A new generation of investors, aged between 30 and 40, linked to technology and digital entrepreneurship, is transforming the notion of residential luxury, valuing location, comfort and sustainable solutions.
“The luxury real estate market in Portugal is today more solid than ever”said Miguel Poisson, CEO of Portugal Sotheby’s International Realty, highlighting the growing attractiveness of Portugal as an excellent destination to live and the resilience of the market.
O average value of properties sold rose 22% compared to the previous yearindicating an appreciation, even with a slight drop of 6% in the total number of transactions. The appreciation per transaction increased by 20% compared to the first four months of 2025, suggesting a market with more demanding and sophisticated buyers.
Miguel Poisson, highlighted that “These data confirm the growing international recognition of Portugal as a safe, sophisticated destination with a high quality of life”.
He added that the increase in the average value of transactions reflects the attractiveness of prime areas, such as Lisbon, Porto and Algarve, and the maturity of the market, which now has buyers who are more informed and oriented towards long-term value.
Os Portuguese buyers continue to represent a significant part of the luxury market, with 54% of transactions. Lisbon leads the national demand, followed by the Algarve, Porto and Madeira, with a growing appreciation of the types of T2 apartments and T4 houses.
Lisbon continues to be the epicenter of residential luxury, especially in areas such as Chiado, Príncipe Real and Avenida da Liberdade. However, new areas such as Comporta/Melides are gaining prominence.
In the Algarve, international demand is high in areas such as Vale do Lobo and Vilamoura.
Madeira also recorded significant growth of 174% in turnover between January and August 2025, driven by demand from national and foreign buyers.