Engel & Völkers Portugal Reports 40% Transaction Surge as Lisbon Luxury Market Defies Global Headwinds

In a robust showing for Portugal's high-end residential sector, Engel & Völkers—the German-origin luxury real estate brokerage active in 33 countries—has recorded a 30-40% year-on-year jump in transactions across its Lisbon, Oeiras and Setúbal operations. The 2025 performance, detailed by Sales Director Daniela Rebouta in an interview conducted on Avenida da Liberdade, underscores how scarcity of prime stock and sustained foreign demand continue to push values higher even as interest rates and inflation bite elsewhere.

Rebouta, who oversees 160 consultants, indicates that the firm is on track to transact roughly 500 properties this year, almost double the residential portfolio the company held twelve months ago. With 90% of luxury buyers originating outside Portugal, the data reinforce Lisbon's position as a safe-haven destination for capital from the United States, Brazil, the United Kingdom and Germany.

The company's flagship office sits on Avenida da Liberdade, Lisbon's 1.6-kilometre boulevard linking Marquês de Pombal to Restauradores and home to flagship stores, five-star hotels and embassies. This micro-market routinely commands sale prices above €8,000/m² and rental yields compressing toward 3.5%, yet remains the first port of call for ultra-high-net-worth arrivals who value walkability, metro connectivity and brand recognition. For a detailed breakdown of price bands across the capital, see our Lisbon market insights dashboard.

Rebouta's remit now extends to the south bank (Margem Sul) after the firm opened a Setúbal desk in February 2025. Areas such as Comporta, long a discreet retreat for European aristocracy, are attracting architects and fund capital seeking turnkey estates within 90 minutes of Lisbon Airport. Investors looking for comparable coastal options can explore our dedicated Lisbon coastline guide.

Market Implications for Investors

The brokerage's 2025 numbers illustrate a wider phenomenon: Portugal's luxury housing has decoupled from mainstream residential indicators. While mid-market transactions slowed in response to 4% Euribor and tighter mortgage rules, the €1m-plus cohort—typically cash-rich—continues to transact. Rebouta notes that many clients arrive through the firm's Miami, Zurich or Berlin offices, underscoring how global wealth managers still view Portuguese bricks as a euro-denominated store of value.

Crucially, supply-side constraints remain acute. Lisbon's historic centre offers limited redevelopment sites, and new-build permits inside the Second Circular face height caps and heritage restrictions. Engel & Völkers' angariações (listing acquisitions) have nearly doubled year-on-year yet absorption is rapid; premium stock stays on the market an average of 42 days, half the 2022 figure. Foreign investors competing for scarce inventory should therefore budget for competitive bidding and consider off-plan alternatives listed in our Lisbon off-plan catalogue.

Tax tweaks have not derailed demand. Changes to the Golden Visa (eliminating real-estate eligibility in high-density municipalities) and the Non-Habitual Resident (NHR) regime (phasing out broad exemptions by 2024) removed two marketing hooks, yet Rebouta insists these programmes represented "a small slice of revenue." Quality-of-life metrics—safety, healthcare, climate, English proficiency—now carry more weight than fiscal carrots, a shift that aligns Portuguese luxury with Madrid or Milan rather than Cyprus or Malta.

Who is Daniela Rebouta and Why Her Data Matters

Rebouta joined Engel & Völkers Portugal in 2019 as a team assistant, progressed to team leader in 2021 and was promoted to Sales Director in 2023, giving her visibility across front-line transactions, recruiter hiring and strategic expansion. Her region spans three distinct sub-markets: prime Lisbon (historic and corporate), Oeiras (corporate campuses and waterfront villas) and Setúbal (coastal estates and vineyard quintas), providing a proxy for foreign capital allocation nationwide.

Under her watch the office has embraced AI-driven CRM tools and cross-border referrals; roughly 25% of 2025 buyers purchased sight-unseen via virtual tours before a single visit, a statistic that highlights both digital maturity and purchaser confidence in Portuguese due-diligence standards. Investors unfamiliar with local legal safeguards can review our Portuguese property law explainer.

Luxury Segment Dynamics in Context

The Portuguese luxury market—defined less by price bracket and more by rarity of location, architecture or view—has proven resilient through pandemic, war-induced inflation and interest-rate shocks. Several structural factors continue to support capital appreciation:

• Scarcity Premium: UNESCO-listed centres, waterfront villas and quintas enjoy strict zoning, limiting competing supply
• Currency Arbitrage: Dollar and Brazilian-real buyers gain 10-15% euro-denominated discounts compared with 2021 FX rates
• Generational Wealth Transfer: North-American baby-boomers seek European footholds ahead of inheritance transitions
• Rental Yield Safety Net: Short-term licences capped since 2023, yet seasonal luxury rentals in Lisbon-Cascais still net 5-6% gross

Rebouta confirms that palaces, penthouses with rooftop pools and contemporary "total-package" villas trade off-market first; discreet listings rarely reach portals. Buyers targeting off-market inventory should therefore engage Lisbon luxury property agents with established brokerage networks rather than relying solely on public search portals.

Investment Considerations for 2026 Entry

With prices still rising—albeit at a gentler single-digit pace—capital preservation rather than speculative flipping motivates most entrants. Rebouta's mantra that "luxy has no number" underlines the need to define personal utility (sea view, walk-to-school, pied-à-terre) before budget, then lock in scarce stock when it surfaces. Expect to compete with family offices and Portuguese developers who buy to refurbish and fractional-sell.

Financing is largely irrelevant in this tier—80% of E&V transactions are equity-funded—yet structuring remains critical. Foreign purchasers should secure fiscal representation, open a Portuguese bank account early and scrutinise condominium finances, particularly in 1970s buildings common in Avenidas Novas or Estoril. Our English-speaking real-estate lawyers can streamline due-diligence and help navigate the new IMT (municipal transfer tax) surcharge on second homes above €1.5m introduced in 2024.

Looking Ahead: Can Momentum Persist?

Rebouta projects 2026 will outperform 2025 on the back of an enlarged consultant network, deeper Margem Sul inventory and AI-enabled matching of global buyers to off-market product. While macro clouds—persistent inflation, possible euro-area recession—linger, Portugal's luxury segment has historically lagged global equities by 12-18 months, suggesting any correction could be deferred into 2027.

For investors, the key takeaway is continuity of structural demand, euro-asset diversification and lifestyle utility that underpins holding-period resilience. Those ready to act should pre-qualify funds, instruct a reputable solicitor and maintain close contact with agents who routinely handle cross-border capital. For tailored guidance on Lisbon luxury opportunities, contact realestate-lisbon.com.