Portugal Continues to Attract Luxury Home Buyers Despite Recent Legislative Changes

Discover why international real estate investors are still eyeing up Portugal for luxury property investments, even after recent legal adjustments.

Portugal has been identified as one of the top 10 preferred countries for luxury home purchases in 2024, according to Knight Frank's 'The Wealth Report 2024'. International investors participating in the study expressed a 3.8% likelihood of purchasing luxury properties in Portugal, ranking the country ninth among the surveyed nations. The United Kingdom leads the list with 17.7% of investors considering a new home purchase this year, followed by the USA at 9.8% and France at 7.2%.

The study forecasts a rise in the number of international investors with a net worth of $30 million or more. In 2023, 800 luxury property investors were recorded, marking a 3% increase from the previous year. Looking ahead to 2028, Portugal is expected to attract a thousand investors, reflecting a 25% growth compared to the previous year.

The Algarve region is particularly popular among English, Irish, and northern European buyers, while the Lisbon and Cascais markets are witnessing increased interest from American and Brazilian investors. Alex Koch de Gooreynd, who oversees the Swiss, Austrian, and Portuguese markets at Knight Frank, highlighted these trends in a statement to Jornal Económico.

Despite a 12.3% price increase in luxury homes in the Algarve in 2023, making it the fourth highest among the 100 cities analyzed, demand from wealthy foreign investors remains strong. Prices in Porto rose by 5% and in Lisbon by 2.2%, but the high cost of housing in these areas is not expected to deter affluent investors, with demand projected to continue growing this year.

Portugal's appeal as a destination for luxury real estate investment is on the rise, with international investors showing a keen interest in the country's diverse property offerings. The forecasted increase in demand underscores Portugal's position as a key player in the global luxury real estate market.