The luxury real estate world is about to change significantly in 2025, and Portugal is part of this exciting shift. A recent report by Portugal Sotheby’s International Realty reveals that women and Millennials are increasingly influential buyers in this exclusive market.
The ‘Luxury Outlook 2025’ indicates that investors from around the world and within Portugal are fueling expansion, with a 20% rise in transactions in 2024 and an average property value of €1,030,269.
Fueled by factors like greater wealth movement, generational wealth transfers, and the boosting effect of “Best Cities to Live” awards on real estate values, the desire for property in Portugal is still powerful, notably in sought-after prime areas such as Lisbon, Porto, the Algarve, Madeira, and the Melides/Comporta/Tróia region.
However, a major development impacting the business is the large-scale shift of wealth from older to younger generations. Approximately €80 billion is expected to move from the Silent Generation and Baby Boomers to their descendants by 2045, influencing investment choices.
Millennials, especially, are becoming a major influence in high-end real estate, pursuing properties that match their desired lifestyles.
Women are also increasingly important in the sector. Estimates suggest that by 2030, women will have control over roughly €33 billion in assets, which is about 38% of all U.S. investments.
These shifts are expected to shape purchasing decisions, with greater importance given to exclusivity, sustainability, and premium features.
In addition, affluent individuals are becoming more mobile, with 128,000 millionaires relocating around the world in 2024. Portugal is still a top choice, having attracted 800 new, wealthy residents in the past year alone.
The increase in branded residences, providing customized services and special experiences, further demonstrates the changing needs of luxury purchasers. With the high-end real estate market in transformation, having a skilled local agent working with you is vital.
Whether your intention is to invest in a luxurious property in the Algarve or to list your property for sale, Algarve Home Sales can deliver bespoke insights, access to unique property offerings, and skilled support to enable you to make informed choices in today’s intense market. Contact us today to connect!
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