Gonçalo Peixoto Updated: May 25, 2026
In times of global uncertainty and current tension in the Middle East, investors, homebuyers, and families naturally seek out more stable markets with security and long-term value. Within this context, Portugal stands out as a popular option, with the country having cemented itself as one of the safest globally – 7th in the 2025 Global Peace Index – and with a diverse and expanding property market.
In the past months, global conflicts and geopolitical uncertainty have led to more foreign buyers selecting Portugal as a safe long-term option. Most recently, the conflict in the Middle East has led to increased interest among individuals moving to Portugal from the UAE (United Arab Emirates) or investing in Portuguese property from countries in the Middle East.
Portugal, a More Selective Investment
Market expectations about the future are crucial for investors shopping around to see where to invest in property. If there is a clear expectation of rising interest rates, investors are cautious and selective with their investments. Wars inherently erode confidence in the market and, while it is still too early to make firm predictions on the current situation in the Middle East, we can see a slight shift in buyer habits.
At Goldcrest, we’ve noticed an increase in interest from UAE residents seeking out Portugal as an option for relocation or investment, with clear motivations being:
- Parking capital outside the UAE
- Stable political and socio-economic conditions
- High-quality education and healthcare
- Potential capital appreciation and rental income
- High quality of life
UAE residents interested in Portugal are showing a clear preference for hotspot locations such as Lisbon, Cascais, the Algarve, and Madeira, alongside the luxury enclave of Comporta on the Alentejo Coast.
Portugal Real Estate Still Not Affected by the War
Despite heightened geopolitical tensions and broader uncertainty worldwide, Portugal’s property market has not been disrupted by the conflict in the Middle East.
Two core reasons can be seen as key to this – sustained national and international demand and the country’s long-standing supply shortage. However, as with all property markets in times of geopolitical instability, the main risks to Portugal’s property market as a result of the war lie in:
- Higher inflation
- Higher energy costs
- More expensive construction materials
- Financing costs
The pressure can already be seen reflected in financial markets in March, where uncertainty caused Euribor rates to surge by one of the highest increases in the past three years, raising concerns about borrowing costs and housing affordability across Europe.
In the face of these macroeconomic pressures, however, Portugal’s property market continues to show resilience. In a recent press release by Confidencial Imobilário, an independent Portuguese real estate databank, 37,750 homes were transacted in mainland Portugal in the first quarter of 2026, representing a 9.4 percent drop when compared with the previous year. However, housing prices still rose 21.1 percent year-on-year.
While transaction volumes are lower, continued price growth highlights sustained demand and structural supply constraints that are currently shaping the market.
Portugal, a Safe Haven in Europe
The label of “safe haven” is all too commonly used in real estate commentary. However, in Portugal’s case, it is supported by a range of structural and behavioral factors that continue to influence buyer decisions.
- Portugal’s safety ranking: 7th safest country on the 2025 Global Peace Index
- Institutional and political stability: Democratic society and EU member
- Quality of life: A combination of climate, beaches, food, culture, excellent schools and healthcare
- Strong capital appreciation and rental yields: Sustained demand and rental yields typically ranging from 5-8 percent, depending on property type and location.
- Diversified real estate market: Dynamic property market that is diversifying (more interest in interior areas)
- Tech and business hub: Cities such as Braga, Lisbon, and Porto are now well-established business hubs
- English is widely spoken: It’s easy to get to know locals and fellow expats
- Accessible residency options: The D7 Visa (for retirees), Digital Nomad Visa (for remote workers), and the Golden Visa (for investors) are just a few of the residency options on the table.
Middle East Invests Little in Portuguese Real Estate – But Interest is Growing
Investments from the Middle East have been quite limited compared with other regions that have historically invested in Portugal’s property market, such as Europe, the USA, the UK, and, more recently, Asia.
However, this looks to be changing as there is increasing interest in UAE residents seeking to relocate or invest in Portugal’s property market.
Portugal Offers Consistency in the Face of Uncertainty
Portugal’s positioning as a safe haven is not the result of a single trend or external shock. It is the outcome of multiple reinforcing factors that have developed over time: Institutional stability, safety, lifestyle quality, and integration within the European framework.
Portugal’s appeal is rooted in its durability and evolution. The country continues to attract international buyers who are less focused on short-term cycles and more interested in long-term stability, diversification, and quality of life. Many buyers are now looking beyond the traditional hotspot locations of Lisbon, Porto, and the Algarve and seeking out other areas, such as the Silver Coast, the Alentejo, and Central Portugal.
Portugal is not a reactive market. It is a consistent one—and in today’s environment, consistency has become one of its most valuable attributes.
