US Investors Drive 82% Surge in Average Spend on Portuguese Luxury Homes
Portugal’s luxury property market has seen a dramatic influx of capital from North American investors, with new data from Portugal Sotheby’s International Realty revealing an 82% explosion in the average transaction value for this demographic during the second quarter of 2025. The statistical report, released this Wednesday, paints a picture of a market defined by high-value acquisitions and growing international confidence, particularly in Portugal's most exclusive regions. The findings confirm a trend of discerning buyers targeting premium assets for long-term growth.
The analysis, based on transactions recorded between April and June 2025, was conducted by Sotheby's internal market intelligence team, which cross-referenced sales data with buyer nationality and property characteristics. This methodology provides a granular view of investment flows, showing a 31% year-over-year increase in the firm's total revenue and a 34% rise in business volume compared to the first quarter of the year. While US buyers were the primary drivers of the increase in average spend, the report also noted continued strong activity from Brazilian and British nationals, reinforcing Portugal's broad international appeal. For a deeper dive into these trends, investors can review our market intelligence and analysis blog.
Specifically, the data points to two-bedroom (T2) apartments and four-bedroom (T4) villas as the most coveted property types. The average value of all properties sold increased by 22% compared to 2024 figures, a clear indicator of asset appreciation. In contrast, the total number of transactions declined by 6% over the same period, suggesting a market consolidation where fewer, but more valuable, properties are being traded. This indicates a flight to quality among both domestic and international buyers.
The geographic breakdown shows that prime areas in Lisbon and the Algarve are the epicenters of this investment boom. In Lisbon, neighborhoods like Chiado, Príncipe Real, Lapa, Avenida da Liberdade, and Restelo continue to fetch the highest prices per square meter. In the Algarve, the 'Golden Triangle' of Vale do Lobo and Quinta do Lago, along with Vilamoura, remains a magnet for international capital. The report also highlights emerging hotspots, including the Comporta/Melides coastline, which has experienced “very sharp appreciation” over the last five years. Our detailed Lisbon neighborhoods guide offers insights into the capital's top-performing districts.
Comparing different time periods, the 82% surge in the second quarter of 2025 represents a significant acceleration from previous years. While domestic buyers still represent the majority of transactions at 54%, the value driven by international investors, especially Americans, is reshaping the top end of the market. The report also identifies a new, younger cohort of buyers, aged 30-40 and active in tech and finance, who are increasingly influential in the luxury segment.
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Miguel Poisson, CEO of Portugal Sotheby’s International Realty, stated that the data reflects a maturing market. “The expressive increase in the average ticket by North American investors, and the valorization of the transacted assets, reflect not only the attractiveness of prime zones like Lisbon, Porto, and the Algarve, but also the maturity of a market now marked by a more informed, exigent, and long-term value-oriented buyer profile,” he commented. This shift is a key theme for anyone considering entering the market, and guidance from professionals specializing in international clients is invaluable.
The government has not issued a direct response to these specific figures, but the data aligns with its broader strategy of attracting high-value foreign investment. The stability of the Portuguese economy and its favorable lifestyle conditions are frequently cited by real estate bodies as foundational to this sustained interest. The market's performance, especially in the luxury sector, continues to be a bright spot in the national economic landscape.
Looking ahead, Sotheby's did not provide a specific timeline for its next report but indicated that it will continue to monitor these trends quarterly. The pronounced growth in the second quarter sets a high benchmark for the remainder of 2025, with all eyes on whether the momentum from North American investors will be sustained through the second half of the year.
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