The luxury real estate market in Portugal has seen very strong growth over the years. Being an investment with attractive rates of return, which gives rise to countless business opportunities , demand is high and profits are attractive.
Adriano Nogueira Pinto, national coordinator of DS PRIVATE and experienced in the sales field for more than three decades, states that the luxury real estate market in Portugal is “strong and in good health” and is one of the most popular investments at the moment. It is, in fact, a great preference for foreigners and their “safe haven”.
In an already inflated market, demand for luxury properties will continue to rise
In Portugal, prices of homes for sale increased by 6% between 2014 and 2020, according to data from the study O Mercado Imobiliário em Portugal. And the trend has continued to this day, contrary to what was expected.
“When we compare the price per square meter with that in February 2022, we can see an increase of around 6%. Luxury properties are no exception and prices have risen in proportion to the values that are being practiced in the market”, reinforces Adriano Nogueira Pinto, adding that the average value of a luxury property is now around 1.7 million euros. But there are records of transactions reaching 8 million euros, particularly in Quinta do Lago and Vale do Lobo.
The representative of DS PRIVATE points out those he considers to be mainly responsible for this inflation: “The largest percentage of investors in the luxury real estate market come from abroad, with North Americans being the ones who invest the most in Portugal. The British, Germans and French also stand out at the top of those who buy the most luxury properties in Portugal”.
Despite the growing interest of foreigners in the Portuguese luxury real estate market is security, climate, landscape and hospitality.
Dynamic luxury real estate market beyond big cities
One of the aspects that most impacts investment in the luxury real estate market is location. As expected, the most popular areas for investors are the urban centers of Porto and Lisbon.
In the capital, the highlight goes to Parque das Nações, Restelo, Chiado, Príncipe Real and Avenida da Liberdade. In the area surrounding Lisbon, the greatest demand is in Cascais and Estoril .
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However, according to the national coordinating director of DS PRIVATE, there is increasingly a “growing tendency to relocate demand to less urban areas ” and acquire a property that can “combine leisure and work for several family members”.
With this in mind, large cities are very popular choices, but they are not the only ones, especially if the buyer values privacy and serenity .
“The wealthier families looked for housing in the peripheral areas of the cities of Lisbon, Porto and Coimbra, with the growing demand for the interior areas of the country being evident , for properties with large areas and outdoor spaces ”, he explains.
The most sought-after properties always correspond to new or rehabilitated properties , says Adriano Nogueira Pinto, listing the aspects that buyers value most in the luxury real estate market:
- Attractions located close to the property;
- Rooms with generous areas;
- Large outdoor spaces, with green areas and swimming pool;
- Ostensive finishes combined with technology;
- Energetic certification;
- Great access;
- Neighborhood;
- Security;
- Landscape.
Real estate investment seen as a “life-saving board” against the crisis
Portugal closed 2022 with an inflation rate above 7% and there are now fears that a recession will further shake the economy. The luxury real estate market reacted to this development. However, contrary to expectations, the macroeconomic context is translating into gains for the sector.
In the words of the national and international coordinator of DS PRIVATE, “families began to invest in premium properties in order to protect their income against inflation”, viewing real estate investment as a “lifeline” against a possible recession.
To prove this, Adriano Nogueira Pinto gives the following example: “An investor with one million euros available in his account, with inflation of 7%, will lose 5 thousand euros per month if he does not invest this amount in a profitable asset ” .
Foreign citizens realize this and look at Portugal as a pleasant and profitable option, as they find investment opportunities here at a much lower price compared to their home countries.
It therefore becomes clear that the luxury real estate market is witnessing exponential growth. Given this, the possibility of operating in this business segment appears to be a highly profitable opportunity.
For this reason, the DS PRIVATE network is expanding, not only in Portugal but worldwide. With close to 25 stores open across the country, we began our international expansion plan .
If you are an ambitious investor and want to be part of this journey, leave us your details to be contacted and receive all the information.
