Portugal may be famous for its idyllic landscapes, historic cities, and enviable climate. Still, in recent years, it has quietly added another title to its resume: home to one of Europe’s most resilient and influential high-end real estate markets. Beyond the glossy images of luxury villas in the Algarve and sleek apartments in Lisbon, a recent study reveals this segment's crucial role in the national economy, generating billions of euros and supporting tens of thousands of jobs.

Conducted by Porta da Frente Christie’s and NOVA School of Business & Economics (NOVA SBE), the first edition of the study - “Realty Premium Market” - analyzed the socio-economic impact of Portugal’s premium residential market, which includes the top 10% most expensive properties in the country. Between 2021 and 2023, this segment generated over €7.2 billion in national production and sustained more than 94,000 full-time jobs. In a period marked by global instability and the aftermath of the COVID-19 pandemic, these numbers highlight not only the market’s resilience but also its growing importance as a pillar of economic stability.

Key hubs and shifting dynamics

The research identifies Lisbon, Faro (Algarve), and Porto as the primary centers of high-end real estate activity. In these regions, affluent buyers, both local and international, continue to seek prime locations, particularly in coastal and urban areas. Lisbon alone accounted for over 60% of the national supply of premium properties, with districts like Cascais and Estoril maintaining the strongest demand.

Interestingly, the study notes a notable uptick in high-end property development in areas beyond the traditional hotspots. Districts like Setúbal, Beja, and Madeira have all recorded growth, particularly in the Affluent segment (properties priced between the 90th and 95th percentile). This trend suggests that luxury demand is broadening geographically as buyers seek alternatives to the capital’s competitive and saturated market.

Rising prices, steady demand

From 2021 to mid-2024, property prices in the high-end segment rose by 23% in nominal terms, driven by a combination of limited supply, sustained demand, and rising construction costs, which are estimated to have increased by around 30% over the same period. However, when adjusted for inflation, the real increase in prices was a more modest 3%, reflecting broader macroeconomic pressures across Europe.

Despite the end of favorable policies like the Golden Visa program and the Non-Habitual Resident tax regime, which had previously attracted foreign investment, demand has remained relatively strong. The study highlights that the pressure from buyers, as measured by online interest, doubled between early 2021 and late 2023, stabilizing only with the rise of interest rates and global financial tightening.

A future of cautious optimism

Looking ahead, the market is expected to maintain moderate growth. Lower interest rates and improved financing conditions could spark a new wave of investment, though rising construction costs and geopolitical uncertainty remain challenges. Importantly, Portugal continues to position itself as an attractive destination for international buyers seeking safety, quality of life, and a stable investment environment.

Lisbon was recently ranked as the 10th most attractive European city for real estate investment in 2025, according to a PwC study. This recognition reflects not only the country's political and economic stability but also the growing global awareness of its premium lifestyle appeal.

What makes the findings of this study particularly relevant is their broader economic context. The premium property sector is not merely about luxury homes, it’s a complex ecosystem that sustains employment, supports local businesses, and drives ancillary industries such as construction, architecture, and design. It also contributes significantly to national tax revenues and urban regeneration efforts.

As Portugal continues to evolve as a prime destination for high-net-worth individuals, policymakers and industry leaders may need to balance this growth with sustainable development, ensuring that the benefits of this booming sector extend beyond the luxury market itself.

Get to know more about the booming Real Estate market through the “Realty Premium Market” study.