New analysis by Property Market-Index, a global luxury real estate research firm, has found that Portugal has seen a rapid increase in property prices in the last 12 months, while the EU is expected to see only moderate property price growth of 2% to 6%.
At the end of Q1, average UK house prices rose by just 5.3% year-on-year, while US house prices grew by only 2.7% over the same period, primarily due to higher interest rates and market uncertainty.
Amanda Collison, spokesperson at Property Market-Index, believes Portugal is outpacing the EU, the US and the UK regarding property prices for multiple reasons.
“During 2024, a significant increase in investments from affluent international investors and relocators has been recorded in Portugal. According to the Portuguese Trade & Investment Agency, €13.2 billion was invested in foreign direct investment in Portugal in the last 12 months, a 19% increase from the previous year. Of this amount, €3.5 billion was attributed to real estate investment.”
“Foreign investors accounted for 81% of Portugal’s total real estate investment in Portugal overall last year, while foreign residents made up approximately 12% of Portugal’s population as of December 2023, with US residents increasing to nearly 21,000 people, representing an increase of over 340% in five years.”
“Macroeconomic implications such as interest rates, US Government uncertainty, and the Ukraine and Israel conflicts have certainly played a significant role in this increasing foreign property interest in Portugal, as more international wealth sees the country as a safe haven to invest in and relocate to.”
“Combining this with the lifestyle and investment opportunities the country offers, as well as safety, security, freedom of access to the twenty-nine EU Schengen region countries, 300 days of sunshine per year, stunning beaches and increasing regeneration investments across Portugal, and it’s clear why property prices are being driven by foreign investment so highly.”
For more detailed insights into the latest property hotspots in Portugal, you can access the full Property Market-Index report here.
Portugal Pathways, an organisation that supports high-net-worth individuals navigating life, residency, and the property market in Portugal, concurs with Property Market-Index’s findings. Chairman Paul Stannard has witnessed the results of growing investment into Portugal and property interest himself over the last year:
“Portugal remains a top destination for high-net-worth individuals seeking relocation, thanks to its exceptional safety, rich cultural landscape, favourable tax policies, and the appealing Golden Visa residency-by-investment program. The country’s thriving luxury real estate market—especially in Lisbon and the Algarve—further enhances its allure.”
“The updated Golden Visa residency-by-investment program continues to appeal to investors, offering dual residency in Portugal and EU Schengen freedom of movement for a €500,000 investment in regulated Portuguese alternative investment funds. While property investments are no longer eligible as part of the Golden Visa program, funds can still be invested into dynamic sectors such as renewable energy, healthcare, technology, tourism, and hospitality.”
“This revised framework may offer greater long-term benefits for Portugal, broadening investment options and opening doors to more impactful sectors. Although luxury property investments are no longer linked to the Golden Visa residency-by-investment program, they remain highly attractive thanks to the continued strength and resilience of Portugal’s real estate market.”
You can learn more about Portugal’s Golden Visa residency by investment programme at Portugal Pathways’ latest webinar, ’Securing EU Residency Through Portugal’s Golden Visa’, taking place on June 10th. Click here to register.
Property Market-Index’s findings are heavily supported. According to a recent 2024 Ernst & Young survey, 84% of investors said they plan to establish or expand operations in Portugal over the next year, compared to 72% for the rest of the Eurozone.
77% of respondents also expected Portugal’s attractiveness to improve over the next three years, compared with just 49% three years ago. This would overtake the Eurozone, which had been at 67% last year based on the same metrics.
CaixaBank Research projects Portugal’s GDP to grow by 2.4% in 2025, significantly higher than the Eurozone’s projected growth of 0.8% and 1.3% over the same period.
Comparatively, the UK Treasury’s April 2025 survey of independent forecasts indicates an average growth expectation of 0.8% for 2025, underscoring Portugal’s stronger economic trajectory.
Property Market Index’s latest report ranked property hotspots in Portugal based on their capital growth potential, cultural and educational offerings, heritage, robust investment opportunities, land availability, infrastructure, connectivity, amenities, health and well-being, sustainability, safety and security.
Collison provided insight into which hotspot locations in Portugal investors and relocators should look out for, according to the updated report.
“Some of the areas of the Algarve that feature in our property hotspots list include Ferragudo, Carvoeiro, Vilamoura, Vale do Lobo, Quinta do Lago, Faro and Lagos, which are all seeing growing demand for real estate, particularly with investors and wealthy expats.”
“The Algarve saw 13.8% growth in property prices last year, with the average price per square meter reaching €3,467 in 2025, reflecting a 9.3% increase compared to the previous year.”
“Meanwhile, Lisbon’s luxury districts, such as Avenida da Liberdade, Lapa, and Principe Real, command even higher prices, with new-build properties reaching up to €12,000 per square meter.”
“The Silver Coast area north of Lisbon is still more affordable than the Algarve. Other nearby locations, such as Cascais, Estoril and Sintra, are some of the most sought-after locations for real estate, and this is set to continue with similar growth in property prices to the Algarve.”
“Comporta, which lies southeast of Lisbon, is another real estate hotspot that made our list, along with nearby Alentejo locations Melides and Évora. Foz do Douro sits southwest of Porto in the north and is renowned for its quality of life and history, while Porto and Braga are also performing well and continue to see marginal gains in value based on our data.”
If you would like Portugal Pathways to help you with any research for luxury real estate in Portugal in any of these property hotspots, please get in touch with us to arrange a meeting with one of our real estate specialists here.
For more detailed insights into the latest property hotspots in Portugal, you can access the full Property Market-Index report here.
Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice.
About Portugal Pathways
Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.
Enquiries
For further information about the Property Market-Index report on Portugal or other related enquiries to do with Golden Visa residency by investment, or buying property in Portugal, please contact Steve Philp at steve.philp@portugalpathways.io
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The views expressed on this page are those of the author and not of The Portugal News.
