Apr 17, 2024

Portugal Continues to Attract Luxury Home Buyers in 2024

Despite legislative shifts on Golden Visa program and altering the non-habitual resident (NHR) regime, Portugal's allure to the global elite remains undiminished. According to Knight Frank 'The Wealth Report 2024', Portugal ranks as a top destination for luxury real estate, claiming the ninth spot among ten favored nations.

The report, which surveys international investors about their prospective real estate acquisitions, reveals a notable 3.8% likelihood of these affluent individuals purchasing luxury properties in Portugal this year. This preference underscores the sustained appeal of Portugal in the high-end housing market.

Knight Frank’s analysis anticipates a significant influx of international #investors, each with assets surpassing the 30 million dollar mark. The data from 2023 showcases an increase of 3%, totaling 800 #luxuryrealestate investors. Projections for the next five years suggest an impressive 25% growth, potentially elevating the investor count to a thousand by 2028.

Regionally, the Algarve is predominantly favored by buyers from the UK, Ireland, and Northern Europe, while Lisbon and Cascais are increasingly popular among American and Brazilian investors. However, there's a growing trend among English clients seeking alternatives to urban settings. Alex Koch de Gooreynd, who oversees the Swiss, Austrian, and Portuguese markets at Knight Frank, noted to Jornal Económico:

"We have also seen a demand from English clients for country houses or estates, particularly in the Douro and Alentejo regions, as alternatives to more urban destinations."

The luxury housing market has seen significant price escalations; the Algarve witnessed a 12.3% hike in 2023 alone, making it the fourth-largest increase among the 100 cities analyzed. Meanwhile, Porto and Lisbon saw 5% and 2.2% gains, respectively. Despite rising prices, the high demand from wealthy international buyers is expected to continue unabated throughout the year.

As Portugal cements its position as a premier destination for luxury real estate investment, it showcases robust interest and confidence in its market stability and growth potential.