High-end residences are available throughout Portugal, yet some areas garner more attention than others. Recent findings from idealista/data highlight Lisbon and Setúbal as the most coveted districts for properties exceeding one million euros.
While Lisbon, Porto, and Faro hold the majority of listings, every region across Portugal boasts at least one lavish home for sale. Additionally, the market has seen a significant increase in properties valued above one million euros, reaching over 21,000 by the close of 2024, a 23% surge from the prior year, and the highest count since 2019, according to idealista/data.
This influx is matched by a substantial interest in acquiring upscale homes. Though demand fluctuates (tending to dip towards year-end), the last quarter of 2024 witnessed one of the peak search volumes for premium properties in six years.
The most intense quest for exclusive residences occurred during the initial months of 2023, when the then-government declared the termination of golden visas for real estate purchases, as part of the “Mais Habitação” initiative. The measure caused a 10% annual drop and almost a 22% quarterly fall in demand when it became effective in October.
Which Portuguese locations are most desirable for luxury property acquisitions?
Interest in luxury homes varies across the country. Some buyers seek coastal proximity and easy access to healthcare, education, and transport, along with numerous employment prospects. Others prefer secluded villas, complete with a pool and garden, located away from city centers or in serene rural areas.
Notably, Lisbon and Setúbal hold the highest allure for luxury residences – indeed, these two districts collectively account for nearly half of the national inventory. Data from idealista/data indicates that both Portuguese and international buyers searching for properties above one million euros overwhelmingly gravitate towards investing near the vibrant capital, where the abundance of jobs, culture, and leisure activities is coupled with the convenience of Lisbon’s international airport.
Significant demand also exists for high-end homes on the island of São Miguel (Azores), Leiria, and Santarém, which present a tranquil alternative, blending a small-town feel with nature’s quietude. However, these districts have a much lower supply of luxury villas, apartments, or estates, with fewer than 500 properties available.
Regional Demand for Elite Homes
The map below illustrates the demand for luxury properties valued over one million euros for Q4 2024. The strongest demand is shown in rich green, and the weakest in pale green.
The Porto district falls in the middle ground, drawing moderate interest for properties in this price range. Demand may be diffused across its 2,500+ luxury listings — particularly with its third-highest inventory, trailing only Lisbon and Faro.
Areas with the lowest demand for premium properties at the close of 2024 include Faro and the island of Madeira. Data shows that demand in these regions has declined lately, after its peak in Madeira by late 2021 and in Faro early in 2023. The interest in these exclusive properties may also be diluted amongst almost 7,000 properties on the market (over 5,700 in Faro and more than 1,200 in Madeira).
Trailing the list are the districts of Viana do Castelo and Portalegre, areas renowned for their peaceful living, whether by the sea or in the heartland. Here, the selection of luxury residences is limited, standing at just 23 properties in Portalegre and 91 in Viana do Castelo as of year’s end.
