The luxury real estate market in Portugal is thriving and continues to grow at a rate above the average, with property values in this premium segment climbing steadily. This growth is largely driven by the increasing attractiveness of the country. For several years now, Portugal has been garnering attention for all the right reasons. As the westernmost country in Europe, Portugal is just over an hour and a half away from most major European capitals. The warm hospitality of the Portuguese people, combined with a favorable climate and unique cuisine, makes Portugal a country that leaves visitors eager to return, whether for leisure or even to settle down. With an excellent education system and very low crime rates, Portugal is becoming increasingly sought after by those looking to relocate with their families.
According to the Knight Frank Prime Global Cities Index for the first quarter of 2024, Lisbon ranks as the 28th fastest-growing market for luxury housing prices. This data reflects the resilience of the sector and shows how Portugal remains on the radar of international investors. This trend is also evident in the gradual rise in prices: globally, luxury property prices increased by 4.1% over the year leading up to March 2024, surpassing the 3.2% increase recorded in the last quarter of 2023.
Those looking to buy or invest in Portugal’s luxury real estate market are seeking more than just a luxurious home. They are looking to benefit from everything the country has to offer. The emergence of new work models has allowed many qualified professionals from various nationalities to choose Portugal as their place of residence while continuing to work for their original companies, which has directly impacted the emergence of new investor profiles in the luxury market.
Furthermore, in luxury properties, it’s not just the price that matters but three key factors that place them at the top of the list for the most discerning buyers who seek exclusivity.
This month, the rating agency Standard & Poor’s revised its forecasts for housing prices in Europe for 2024, predicting moderate price increases through 2027. However, this trend is likely to have a positive effect on the sector, making investment highly attractive due to its constant appreciation, offering greater guarantees of returns and capital gains for investors. This is true for both rental and resale markets, not to mention the rehabilitation processes that transform old, dilapidated properties into highly valued assets with modernity, comfort, and top-notch technology. This adaptation often allows the recovery of the aura, soul, and prestige of properties, making them truly unique and desirable, with significant appeal and value.
Despite the context of inflation or rising interest rates, the luxury segment has not been as negatively affected. There are, however, common points with other real estate segments. On the one hand, the luxury property buyer is often also a potential investor; buying or selling a home remains a “safe haven” due to its high profitability. In both cases, potential buyers/investors seek differentiation in their properties, proximity to central areas, quality, and comfort, which naturally impacts the profitability of the business. We are witnessing a “blending” of standards seen in higher-value or even luxury properties. In this way, everyone can benefit from the process, whether in the sale or acquisition of value-added real estate products, with a positive impact on the evolution of the quality of the Portuguese real estate market’s offerings.
Source: Dinheiro Vivo
