The top three regions for real estate investment in Portugal

The real estate market in Portugal continues to attract the interest of investors. In its latest study, Engel & Völkers has identified three key regions that are seeing rapid growth in demand and prices. Let's take a closer look at these areas.

1. Lisbon

The Portuguese capital confidently takes first place among the most sought-after places for real estate investment. Rich history, cultural heritage, and modern infrastructure make Lisbon attractive to residents and tourists. Even with inflation and changes in interest rates, demand remains stable. The districts of Santo António, Arroios, Estrela, Misericórdia and Avenidas Novas are of particular interest to investors. In 2022, the number of transactions reached 8,000, and house prices rose by 14%.

2. Comporta-Melides

The Comporta-Melides region is increasingly attracting the attention of investors due to its unique beaches and diverse recreational opportunities. In 2022, the demand for real estate has increased significantly in Comporta and Melides due to the emergence of new resorts, residential developments, golf courses, and yachting infrastructure. Foreign buyers, especially from Germany, Switzerland, the UK, and Belgium, play a key role in the region. House prices have risen by 67%, reaching €6500 per square meter.

3. Algarve

The Algarve region, which has long attracted real estate investors, remains in the top three sought-after destinations. Particular emphasis is placed on Quinta do Lago, located in the “golden triangle” of the region. Its proximity to the Ria Formosa Natural Park, the presence of golf courses, luxury hotels, and a variety of entertainment make it an ideal location for investors.

Despite a slight decline in sales in 2022, experts predict a market recovery by 2023. The bulk of investors are foreigners, particularly from the UK, the US, Germany, and the Netherlands. Property prices have increased by 35% on average, reaching €3830 per square meter.