In early 2025, the Portuguese real estate market continues to experience a surge in foreign investment, particularly in regions such as the Lisbon-Cascais axis and the picturesque Douro Valley. The influx of international buyers, mainly from Brazil, North America, and other countries, is reshaping the dynamics of the sector and contributing to its robust growth.
The allure of Portugal as a real estate investment destination is evident, with more than 70% of properties on the Lisbon-Cascais axis being purchased by foreigners in the first quarter of 2025. This trend extends beyond the capital region, with interest spreading to areas like the Douro Valley, attracting buyers with its scenic beauty and cultural appeal.
Brazilian investors have emerged as key players in the market, representing a significant portion of transactions in both Lisbon-Cascais and the Douro region. Their preferences for specific property types, such as apartments and family homes, reflect a demand for diverse housing solutions in urban, suburban, and peri-urban areas.
The impact of foreign investment goes beyond mere transactions, influencing the geography of the national market and driving up property values. Lisbon remains a hotspot for real estate activity, followed by Porto and Setúbal, showcasing a market focused on urban and coastal regions. The increase in the number of transactions and the total value of deals illustrate the market’s vitality and resilience amidst global economic uncertainties.
While foreign investment has brought economic benefits and revitalized urban areas, it has also raised concerns about housing affordability for local residents. The luxury segment and tourism-driven developments can exert pressure on housing accessibility.
