Luxury real estate and branded residences in Portugal are booming, with the country seeing a
a rapid increase in property prices in the last 12 months. Foreign investors accounted for 81% of Portugal’s total real estate investment in 2024.
In the branded residences sector, the demand for luxury managed residential properties continues to grow, with developers and investors increasingly eager to tap into the opportunities in both resort and urban markets.
Branded residences in Portugal are expected to grow by at least 150% in the next 5 years.
We believe Portugal has a genuine opportunity to become one of the world’s branded residences hotspots.
Millionaires Love Portugal
Portugal has firmly established itself as a destination for high net worth individuals (HNWIs), drawing affluent buyers and new residents from across the globe, with its compelling mix of lifestyle, climate, and investment potential.
In 2024, the country saw a net inflow of 800 millionaires, reinforcing its position as a leading relocation destination for the ultra-wealthy. Portugal is 9th in the top 10 countries list of millionaires according to data insights by New World Wealth
Over the past ten years, Portugal has experienced a significant surge in affluent residents, particularly from mainland Europe, the UK, Brazil, South Africa, China, Turkey, and the United States.
Portugal’s Golden Residence Permit Program continues to be a top choice, even after discontinuing its real estate linked investment option.
This wealth migration underscores Portugal’s growing appeal, driven by its thriving real estate market and a tourism sector that continues to break records.
The General Real Estate Market
Portugal’s real estate market is strong. As of March 2025, national house prices surged by 15.8% far exceeding the broader European Union’s forecasted growth of 4.5%.
Foreign investors play a dominant role, accounting for 81% of total real estate investment in the country last year.
Foreign direct investment reached €13.2 billion in the past 12 months, a 19% increase from the prior year, with €3.5 billion channeled directly into real estate, international residents are now 12% of Portugal’s population.
So what is driving this momentum? Beyond the obvious, of 300 days of sunshine and stunning coastlines, Portugal offers safety, political stability, and seamless access to the 29 EU Schengen countries, in general te country offers a luxurious, relaxed and easygoing life.
Portugal offers something for everyone, no matter your financial standing.
Its rich cultural heritage and ongoing regeneration projects only enhance its draw for those seeking both a high quality of life and solid financial returns.
The Luxury Real Estate Sector
The luxury real estate market is driven by key regions like Lisbon, the Algarve, Alentejo, and Porto. Lisbon ranks fourth among European cities for appreciation potential in 2025, a testament to its rising status.
The Algarve, meanwhile, posted a 13.8% increase in property prices last year, with the average price per square meter currently hitting €3,467, up 9.3% from the previous year.
Locations such as Ferragudo, Carvoeiro, Vilamoura, Vale do Lobo, Quinta do Lago, Faro, and Lagos are seeing heightened demand from investors and wealthy expatriates.
Portimão, the Algarve’s second-largest city, is a great example of the growth that Portugal is witnessing Prices there range between €2,600 and €3,200 per square meter, reflecting an 11.8% annual increase.
Praia da Rocha, with its lively nightlife and pristine beaches, draws buyers to luxury apartments, while the city center caters to families and professionals seeking convenience.
Across the luxury sector, buyers are shifting preferences favouring spacious private homes or hotel managed branded apartments in tranquil, nature rich areas or historic properties in urban settings.
Luxury tourist developments managed by hotel brands are also gaining traction among international investors, bought as either investment properties or as permanent homes, from buyers who demand hospitality experienced management, sophistication, discretion, and practical design.
The updated Golden Visa program remains a powerful incentive. While direct property investments no longer qualify, a €500,000 investment in regulated Portuguese alternative funds, spanning sectors like technology, tourism, and hospitality, still offers dual residency.
Branded Residences In Portugal
Branded residences in Portugal are not a new, for example W Residences Algarve was launched in back in 2019, and half of the units were sold off plan, making it one Europe’s fastest selling branded projects at the time.
Branded residences are whole ownership residential properties, that are tied and associated to prestigious hotel and lifestyle brands, they combine luxurious high end living with managed services and facilties, attracting buyers who value prestige and a “lock up and leave” lifestyle.
Over the next five years, Savills forecasts that more than 1,200 new branded residential units will be completed across 14 projects in Portugal, and there is a continued pipeline of new projects being launched to the sector, which is a strong signal for the growth of branded residences in Portugal.
We expect the sector to grow by around 150% over the next 5 years.The Algarve is the heart of the growth, with six branded schemes set to launch shortly.
Iberian developer Kronos Homes recently announced the launch of a limited number of branded residences for private purchase in the renowned Salgados Beach resort in the Algarve in southern Portugal.
The co-located properties include just 42 residences at the Westin Salgados Beach Resort and 54 at the Marriott Residences Salgados Resort.
Lisbon, too, is a focal point, with projects like The Residences at Hyatt Regency Lisbon and the recently announced Aroeira Collections by Missoni an exclusive residential and touristic project nestled in the lush nature of Aroeira, just a few kilometers from Lisbon.
Other brands active throughout Portugal include; W Hotels, Six Senses and Wyndham, with Karl Lagerfeld, and YOO Studio both having projects in pipeline.
The sector’s strength for property developers lies in there pricing power, branded properties in Lisbon and the Algarve command a 20%-25% premium over non-branded traditional real estate.
A Buoyant Tourism Sector
Portugal’s tourism sector is a powerhouse, which in our opinion has aided both its real estate and luxury branded residences markets. In 2024, the country welcomed 31.6 million visitors and recorded 80.3 million overnight stays, a historic high.
This represents a 5.2% increase in tourists and a 4% rise in accommodation year on year. External markets drove 70.3% of overnight stays, totalling 56.4 million
The UK leads as the top source market, followed by Germany, Spain, North America, and France. Yet the sharpest growth comes from Canada (+17.1%) and the USA (+12.1%), signaling Portugal’s expanding appeal across the Atlantic.
Tourism generated €27.7 billion in 2024, an 8.8% jump from the prior year, accounting for 9.7% of GDP.
National hospitality metrics are equally strong, with average room occupancy at 66% and RevPAR at €77, led by Lisbon, the Algarve, and Madeira.
This influx of visitors fuels the demand for luxury properties, particularly branded residences, as affluent travellers now seek homes that can double as investments.
The hospitality sector attracts global players like New York-headquartered Davidson Kempner Capital Management and Invesco, who are investing in not only hotels but sub-sectors like serviced apartments and branded residences.
With a 5% hotel pipeline growth in Lisbon and the Algarve over the next two years, and emerging markets like Braga and Évora on the horizon, the hospitality sector’s outlook is bright.
Portugal A Global Branded Residences Hotspot
We’ve seen firsthand how Portugal’s unique qualities like its climate, lifestyle, and economic stability draw wealth and investment.
The luxury real estate market, assisted by strong tourism and international demand, is evolving quickly and branded residences, with their reputation for exclusivity, premium pricing and swift sales, are a natural extension of this growth.
For developers, investors, and buyers, Portugal offers a unique combination: a high quality lifestyle, a thriving tourism market, and a luxury real estate sector with global potential.
As we look ahead, its trajectory as a branded residences hotspot seems not just possible, but inevitable.
Branded Residences Globally
The branded residences sector globally is on a great growth trajectory adding around 250 projects alone in 2024. Currently the leading branded residences hotspots, are Dubai, Miami (Florida), New York, London, São Paulo and Phuket
However, with almost 1,500 projects (either completed or in pipeline) globally, the popularity of branded residences is evident in almost ever corner of the globe, and this high end real estate sector is poised for strong growth well into the 2030s, with expected projects forecasted to double.
Read more about branded residences with our: The Ultimate Guide to Branded Residences in 2025
FAQ’s
Who is driving the demand for high-end residential properties in Portugal?
The demand for luxury managed residential properties and branded residences in Portugal is wealthy residents coming from countries like mainland Europe, the UK, Brazil, South Africa, China, Turkey, and the USA, alongside growing interest from developers and investors in both resort and urban markets.
Why is the Algarve a key area for branded residential developments?
The Algarve is the epicenter of branded residential projects in Portugal due to its appeal as a luxury destination, with six new schemes expected to launch over the next five years, adding over 700 units to the market. Pipeline is also very strong with projections of 150% growth over the next 5 years.
What hotel and luxury brands are involved in branded real estate in Portugal
Brands active in Portugal include; W Hotels, Six Senses, Hyatt, Missoni, Wyndham, Karl Lagerfeld, and YOO Studio
What is Portugal’s Golden Residence Permit Program?
The Golden Residence Permit Program is a popular residency by investment program in Portugal, allowing non EU/EEA citizens to gain residency through various investment routes, though the real estate-linked option was discontinued in 2024.
Who are the main nationalities relocating to Portugal?
Over the past decade, Portugal has seen a significant influx of affluent residents, particularly from mainland Europe, the UK, Brazil, South Africa, China, Turkey, and the United States.
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