top of page

What are the real estate trends in Portugal in 2023?


What are the real estate trends in Portugal in 2023? portugal news
What are the real estate trends in Portugal in 2023? - Portugal Business News

Portugal news - What are the real estate trends in Portugal in 2023? Portugal’s real estate trends contain surprises as demand has shifted gears and property investors are now targeting northern Portugal. Moreover, despite the accelerated pace of new constructions in Portugal, supply is still not catching up with demand for holiday homes.


While demand for properties in Portugal is mainly due to individual Portuguese investors who are buying secondary residences, foreign demand has also accelerated in the wake of the pandemic. Foreigners are now focusing on the luxury property market in northern and central Portugal, with investors from Brazil, North America, France, the UK and Sweden.


What are the new source markets for real estate in Portugal?


The pandemic has created new markets with investors from Russia and neighboring countries now investing in Portuguese real estate due to the ongoing war in Europe. The new source markets for real estate in Portugal are located in countries that are close to conflict zones, including Finland, Ukraine and Russia.


Individual foreign investors are selecting Portugal for buying a secondary residence since they can benefit from special tax regimes for foreigners.


What are the hottest real estate markets in Portugal?


Demand for real estate in Portugal is now centered on properties that are located outside urban areas, as investors are seeking luxury holiday homes with outdoor spaces, pools, terraces, and leisure amenities.


Statistics from INE show surprising real estate trends between 2011 and 2023, since holiday homes have mainly been built in northern Portugal. During that period, one third of new holiday homes have been built in the north, that account for nearly 12,000 new properties in this market segment. Central Portugal is also on the map for new investments, since 8,397 holiday homes were built during that period. The Algarve, that was traditionally the hottest market for holiday homes has only attracted 4,820 new constructions in this market segment, nearly half the number of new properties compared to investments in Central Portugal. Lisbon has attracted even less investment in the holiday homes segment during that period, since only 3,699 properties were built.


So, what are the reasons that explain the new real estate trends in Portugal in 2023?


Investments in the luxury holiday homes market have shifted from the Algarve to northern and central Portugal due to the price/quality ratio that is unrivalled.


Investors are looking for beach houses that are located in rural areas along the Atlantic coast in places such as Viana do Castelo along the Atlantic coast in northern Portugal. A local legend says the town was named after a beautiful Rapunzel-like girl with long blond hair caught in two braids who was called Anna. She was kept in a castle made of stone and could only be seen at the castle’s window. A local boy fell in love with her and used to go and look at her when she appeared at the window and to tell everyone that he saw Ana: “Vi a Ana!”


Northern Portugal is developing at an exponential rate with the rising number of renovation projects over the last decade. Since 2021, property sales have soared in this region with luxury properties dominating the market.


The demand for holiday homes in Portugal is mainly driven by local investors and statistics show that they account for over 50% of real estate transactions for first and secondary residences. Such investments make it possible for Portuguese investors to have a weekend residence while also obtaining income from short-term rentals.


Both local and foreign demand have been rising exponentially and the war in Ukraine has given an additional boost to a market that has shifted gears and is now centered in rural areas where the beaches are yet to be discovered.






Comments

Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page