US Investors Crack Top 5 for Portugal's Holiday Rental Ownership, Eyeing Algarve
A new report on Portugal's short-term rental sector, known as Alojamento Local (AL), has revealed a significant increase in property ownership by United States citizens, who have now entered the top five rankings for foreign proprietors. The data, sourced from the official National Registry of Alojamento Local (RNAL) and reported by Público, highlights a growing internationalization of the market, even as the vast majority of properties remain under Portuguese ownership.
The national tourism authority, Turismo de Portugal, which manages the RNAL, provided data showing that as of August 20, 2025, there were 124,700 registered AL units in the country. Of these, 117,288, or just over 94%, were controlled by Portuguese nationals. The remaining properties are owned by individuals from 101 different countries, illustrating the global appeal of investing in Portugal's tourism accommodation sector. The licensing process requires all short-term rental operators to register their properties, providing a clear and reliable dataset for market analysis.
Among foreign owners, British nationals continue to hold the largest number of properties with 1,762 registered units. They are followed by the French with 1,298 units and Germans with 710. American citizens now account for 455 units, securing them the fifth position and marking a notable surge in investment from the US. This trend aligns with broader demographic shifts, as the number of American residents in Portugal increased by nearly 50% in 2024, and US tourists now constitute the third-largest inbound market.
The data also reveals distinct geographical investment patterns. While Portuguese-owned properties are distributed throughout the country, foreign investors show a strong preference for specific coastal and urban hotspots. The Algarve region is the primary focus, with over 70% of properties owned by British and German nationals located there. For French and American owners, more than half of their portfolio is concentrated in the Algarve, with Lisbon being the other key area of interest. This concentration points to an investment strategy focused on established, high-demand tourist destinations.
A fictional tourism market analyst, Sofia Reis, commented on the findings: 'The emergence of US investors in the top five is a significant development. It reflects not only the strength of the dollar but also a growing awareness of Portugal's value proposition for property investment. The focus on the Algarve is logical, given its proven track record for high rental yields and occupancy rates during the extended tourist season.' The report also noted that foreign owners are more likely to be direct owners of the properties they operate, suggesting a clear buy-to-let investment motive. Discover rental property opportunities and regulations at realestate-lisbon.com.
