A rare 32-hectare Alentejo estate with a private peninsula has entered the market for €3.3 million, signaling a significant opportunity in Portugal's burgeoning rural property sector.
A unique real estate asset in the Elvas area of Alentejo has been listed for sale, featuring a 32-hectare property that includes its own peninsula on the Caia Dam reservoir. The estate, which has been operating as a licensed rural tourism business since 2004, is being marketed as a turnkey investment. The current owner, an architect who painstakingly restored the property from a state of abandonment in the early 2000s, is retiring and looking for a new investor to take over the established operation.
The investment thesis for this property is anchored in its irreplaceable location and the growing demand for high-quality rural tourism. Tiago Grácio, the founder of Encanto Real Estate, which specializes in rural properties and holds the listing, emphasized the regulatory value of the estate. "The key highlight is its location on a peninsula fed by the Caia Dam, the largest reservoir in the Portalegre district. Current building laws prevent any new construction so close to the water's edge. This legislative barrier means that whoever purchases this property will own something truly unique and unrepeatable in today's market," Grácio explained in a recent interview.
The property comprises a main house with nine guest suites, a spacious salon with a fireplace, a rustic kitchen, and a panoramic porch with expansive water views. Additionally, the grounds include a support house for staff, a restored 16th-century Manueline hermitage, and a dedicated building for events. The sale price of €3.3 million includes all furnishings and operational assets. The design theme is inspired by the natural surroundings, with bespoke details like light fixtures shaped like fishing nets and a feature wall that evokes the texture of fish scales, creating a cohesive and authentic guest experience.
This listing comes at a time when the profile of investors in Portugal's interior is undergoing a significant transformation. "Historically, the market for rural estates was dominated by retirees seeking a quiet life in the countryside," noted Grácio. "However, over the past four years, we have registered an impressive surge in interest from a much younger demographic. The majority of our prospective clients now are Portuguese and international buyers between the ages of 30 and 40. This shift indicates a very positive and dynamic phase for our market." This trend points to a robust demand for properties that offer not just a home but also a lifestyle and a potential business venture, particularly those connected to eco-tourism and authentic local experiences.
The property's extensive grounds, populated with mature cork oaks, stone pines, and olive trees, offer a natural sanctuary for guests, who are free to walk the entire 32-hectare expanse. This level of privacy and connection to nature is a core part of its value proposition. The existing rural tourism license is a critical asset, allowing a new owner to seamlessly continue operations without navigating the complex and often lengthy process of new applications. The business has been active for two decades, building a reputation and a client base.
Market analysts see this as part of a broader trend where investors are looking beyond the saturated coastal hubs of Lisbon and the Algarve for assets with strong growth potential. The Alentejo region, known for its open landscapes, wineries, and rich cultural heritage, is increasingly on the radar of international investors. The combination of a fully operational business, a unique geographical setting, and favorable market trends makes this a compelling opportunity. The due diligence for such an investment would focus on the historical performance of the tourism business, potential for expansion or diversification of services, and the long-term management plan for the agricultural and natural land. The property is being sold fully furnished, which simplifies the transition for a new owner and presents an immediate revenue-generating opportunity. Explore investment strategies and opportunities at realestate-lisbon.com.
