[Portugal real estate market] 40% of Luxury Homes in Comporta & Melides from Foreign Buyers

Explore how foreign investment shapes the luxury real estate market in Comporta and Melides, with 40% of homes owned by international buyers.

According to the esteemed German estate agent Engel & Völkers, the most enthusiastic participants in the Portugal real estate market are none other than the Germans, British, and Americans. While the allure of foreign investment in Portugal real estate landscape is hardly a novel phenomenon, certain regions have emerged as particularly enticing for prospective buyers and investors, especially within the luxurious segment of the market.

Take Comporta and Melides, for instance. Here, foreign investment constitutes a striking 40% of all transactions facilitated by Engel & Völkers in the area. The Market Report Portugal, a comprehensive analysis conducted by E&V in collaboration with the Instituto de Marketing Research, scrutinized property transactions mediated by the German multinational during the 2023-2024 period across various regions. The findings are clear: Germans, British, and Americans are leading the charge in this vibrant market.

Now, let’s talk about new homes. The market is experiencing a bit of a rollercoaster ride—there's volatility, but 2023 has been a year of growth. The number of licenses issued for new residential properties surged by an impressive 30.8%, while the completion of homes saw a commendable increase of 26.4% compared to the previous year. However, it’s worth noting that the rental market in Comporta and Melides remains somewhat insignificant, with a mere 74 new contracts signed in 2023.

When it comes to housing prices, the Comporta and Melides region has witnessed a remarkable annual price variation of 28.57%, with the average price now standing at a staggering 9,000 euros per square meter (€/m2). Meanwhile, Alcácer do Sal has been on a steady upward trajectory since 2022, reaching 2,067 €/m2 in 2023. Grândola, while also appreciating, has shown a more tempered increase, concluding 2023 at 1,273 €/m2.

The Portugal real estate market is a dynamic arena, with foreign investors making significant inroads, particularly in the luxury segment. As the market evolves, it will be fascinating to observe how these trends continue to unfold.