US Investment in Portuguese Luxury Property Surges by 82%
A report from Portugal Sotheby’s International Realty has revealed a significant shift in the country's luxury real estate market during the second quarter of 2025, highlighted by an 82% increase in the average transaction value among American investors. The firm's data indicates a 31% rise in total revenue compared to the same period last year and a 34% growth in business volume over the first quarter of 2025. This growth comes despite a minor 6% decrease in the total number of transactions, while the average value of properties sold increased by 22% year-over-year.
The primary drivers of this trend are international buyers, with Americans, Brazilians, and British nationals leading the demand. American buyers have particularly focused on two-bedroom (T2) apartments and four-bedroom (T4) villas located in the premium areas of Lisbon and the Algarve. Brazilian buyers have shown a strong preference for three-bedroom (T3) apartments in central Lisbon. According to the report, the motivation for these acquisitions is often the pursuit of a second home combined with the appealing Portuguese lifestyle. For foreign buyers, connecting with English-speaking real estate agents can be a critical first step.
Miguel Poisson, CEO of Portugal Sotheby’s International Realty, stated that “the luxury real estate market in Portugal is today more solid than ever,” attributing this to the country's growing reputation for safety, sophistication, and high quality of life. He also noted the emergence of a new investor profile: a younger generation, aged 30 to 40, involved in technology and digital entrepreneurship, who prioritize location, comfort, and sustainable building solutions. This trend is reshaping the definition of luxury residential property.
Need Expert Guidance?
Get personalized insights from verified real estate professionals, lawyers, architects, and more.
Geographically, Lisbon continues to be the main hub for luxury real estate, with high demand in neighborhoods such as Chiado, Príncipe Real, and Avenida da Liberdade. The detailed dynamics of these areas can be further explored in our Lisbon Neighborhood Guide. Additionally, new coastal areas like Comporta and Melides are gaining significant traction. In the Algarve, the traditional hotspots of Vale do Lobo and Vilamoura remain popular among international investors. The island of Madeira has also seen remarkable growth, with a 174% increase in revenue between January and August 2025.
While international investment is a key growth factor, Portuguese buyers still constitute the majority of the market, representing 54% of all luxury transactions. This robust domestic demand, coupled with strong international interest, points to a mature and resilient market. Investors looking for opportunities should review the latest investment and strategy guides to make informed decisions.
Explore investment strategies and opportunities at realestate-lisbon.com.