Portugal’s Algarve Ranks in Top 5 of World's Luxury Residential Markets

Discover why the Algarve in Portugal is making waves in the luxury residential market, alongside Porto and Lisbon. Find out more here.

The luxury residential market in Portugal is experiencing a significant uptrend, with the regions of Algarve, Porto, and Lisbon taking center stage. According to The Wealth Report, an annual study conducted by consultancy firm Knight Frank, in partnership with real estate company Quintela e Penalva since 2021, it is revealed that one million euros can only purchase 67m2 in Quinta do Lago. The study highlights the Algarve as one of the top 5 luxury residential markets globally, with prices showing strong performance in 2023. Among the 100 most sought-after destinations worldwide in terms of price appreciation in 2023, the Algarve ranks fourth. With a budget of one million dollars, buyers can acquire a luxury "second home" residence spanning 67 square meters in Quinta do Lago, Algarve. The surge in prices is attributed to the limited supply and the exclusive allure of Quinta do Lago.

Moving on to Lisbon and Porto, both cities continue to witness growth in their real estate markets. Lisbon and Porto are among the cities and regions reporting stable or positive annual price growth, with increases of approximately 2.2% and 5%, respectively. Porto secures the 29th position on the list, surpassing cities like São Paulo, Rome, Barcelona, Milan, and Paris. Meanwhile, Lisbon ranks 60th, outperforming cities such as Dublin, Vienna, Tokyo, Berlin, and New York. The Wealth Report 2024 by Knight Frank predicts a 25% rise in the number of Ultra-High-Net-Worth Individuals in Portugal – individuals with a net worth of $30 million or more – reaching 1000 individuals by 2028.

The luxury residential market in Portugal, particularly in the Algarve, Porto, and Lisbon, continues to thrive, attracting high-net-worth individuals and investors alike. The growth in prices, limited supply, and unique appeal of these regions contribute to their strong performance in the real estate sector.