Portugal’s luxury property market showed no signs of slowing in the second quarter of 2025, achieving remarkable gains in both revenue and overall investment value.
According to new figures from Portugal Sotheby’s International Realty, revenue climbed by 31% year-on-year, while total business volume rose by 34% compared with the first four months of the year—underscoring the continued strength of international demand.
North American buyers, particularly from the United States, have been a key driver of this growth. The report reveals an 82% surge in the average transaction value among North American investors, highlighting their growing appetite for Portugal’s premium real estate.
This heightened interest in luxury properties has pushed the average sale price up by 22% compared with the same period in 2024. Although the number of transactions dipped slightly by 6%, the total value of sales increased—pointing to a clear shift towards higher-end acquisitions.
A new generation of international investors is also reshaping the country’s property landscape. Buyers in their 30s and 40s—many from sectors such as technology, finance, and digital entrepreneurship—are becoming increasingly influential in the market.
Paul Stannard, Chairman and Founder of Portugal Pathways and the Portugal Investment Owners Club, said: “Portugal’s luxury property market continues to benefit from long-term stability, a favourable climate, strong infrastructure, and a high quality of life.
"Portugal’s reputation for safety, combined with a competitive tax environment for certain residency categories, further strengthens its appeal as both a lifestyle choice and a strategic investment.
“Investor confidence really is at an all-time high, with an Ernst & Young (EY) report finding 84% of entrepreneurs surveyed plan to expand or establish operations in Portugal. Additionally, S&P have recently upgraded Portugal’s economic rating from ‘A’ to ‘A+’.”
This new demographic of globally minded buyers is not only seeking prime locations and luxury finishes but also modern features such as energy efficiency, integrated services, and sustainable building practices.
Despite the influx of international capital, domestic buyers remain highly active, accounting for 54% of luxury transactions nationwide. Lisbon continues to dominate demand, representing 53% of domestic purchases, followed by the Algarve (21%), Porto (12%), and Madeira (11%).
About Portugal Investment Owners Club
The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.
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.
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