Updated: August 17, 2023
Are you thinking of investing in luxury villas in Portugal? It just so happens that this captivating country is home to some of the most high-quality luxury villas in the world. This western European country has become famous for its natural beauty, rich history, attractive real estate prices, Golden Visa benefits, safety, stability, and diverse natural landscapes. But, how can you navigate the country to understand where the best places are to find a great villa – be it beachside, luxury, or holiday? Our guide to investing in luxury villas in Portugal will help you plan your investment.
Why buy luxury villas in Portugal?
Portugal positions itself as one of the best countries to live in and retire to. With its delicious local cuisine and beautiful beaches, you’ll find that Portugal holidays just aren’t enough. Its popularity is due to an above-average quality of life, booming real estate market, and attractive tax schemes for foreigners. These factors have led many investors to see Portugal as an excellent investment opportunity.
Whether you’re planning a villa holiday along the Silver Coast or looking to make a beachside villa your new home, there are many options for you to choose from. Portugal aggregates remarkable luxury villas, high-quality construction materials, Pritzker winner architects, great prices, space, and natural landscapes. So, what is there to lose?
Where to buy luxury villas in Portugal?
When looking for a luxury villa in Portugal, it is essential to define what your preferences are and where in Portugal is the perfect location for you.
If you would like an urban experience, you should consider Lisbon’s Chiado or Lapa districts.
For a more exclusive, luxurious lifestyle, the Algarve’s Golden Triangle area is the perfect setting. In fact, Portugal’s Algarve is one of the most exclusive European markets for luxury coastal villas. Properties at the top of the market often cost a double-digit million amount on the south coast.
If you don’t have a clear idea yet, Portugal has plenty of renowned regions where you can discover the perfect villa for you.
The luxury villas in Quinta da Marinha, Comporta, Sintra, or Tróia are famously high-quality and are within walking distance to natural environments, while villas along the Lisbon coast put you just moments away from golden sand.
Some of Europe’s best sandy beaches (88 Algarvian beaches have a Blue Flag) and beachside villas are located in Lagos. Praia da Dona Ana has gained international popularity and has become one of the darlings of the Algarve. The price range for a 500 m² luxury villa with private pools in Lagos is between €3,000,000 and €5,000,000.
The capital of the Algarve, Faro, has prices per square meter ascending to €2,343. The Algarve is the perfect place for villa holidays and by far the most popular region to invest in a Portugal villa holiday. Loulé, Portimão, Albufeira, Quarteira, Lagos, and Tavira are some of the most exciting areas close to Faro. You can purchase an 810 m² luxury villa with modern amenities in central Faro for around €2,200,000.
Magical and bucolic landscapes surround the Serra de Sintra. In Sintra, the luxury villas have magnificent views over the Atlantic Ocean and are close to Cabo da Roca. The iconic Adraga beach is a hidden paradise in Sintra, still considered a rural district, 40 km from Lisbon. A luxury villa in Sintra will usually cost you between €3,500,000 and €5,800,000.
Alvor is a peaceful region with several houses for sale — Alvor’s best areas are close to the beach or the banks of the river. The areas surrounding Praia da Rocha, Ferragudo, or Odiáxere are also pleasant.
You can buy a luxurious villa in Alvor, inserted into a beautiful green plot of more than 10,000 m², with lush gardens, fruit trees, and panoramic sea views for €4,500,000. More compact options start from €1,500,000.
Lisbon’s Metropolitan Area is the most expensive area to buy a luxury villa, with the square meter priced at around €6,200 in 2022. In central Lisbon, you will find luxury flats and opportunities to invest in buildings. In Chiado, it’s possible to buy a luxury villa for around €6,000,000 (600 m² area).
The Linha de Cascais — the most western part of Lisbon’s district — is guided by Avenida Marginal and distributes Caxias, Oeiras, Estoril, and Cascais. Here you can find some of the most expensive properties in Portugal. Moreover, a three-bedroom beautiful villa in the quiet area of Caxias can be yours for around €700,000 (about 150 net/m² area).
The central Algarve region around Vilamoura is especially popular with buyers.
Vilamoura itself, a purpose-built resort with a 1,000-berth marina and golf courses at its heart, is home to luxury villas, hotels, casinos, sports facilities, and beach clubs. Additionally, this “Portuguese Palm Beach” area is close to Faro airport. Quinta do Lago and Vale do Lobo compete with Vilamoura as some of the most popular areas in the Algarve to buy a luxury villa with easy access to some of the best beaches.
How to Buy Luxury Villas for Sale in Portugal
Compared with other European countries, Portugal’s luxury villas for sale are well below the average price. The price per square meter in Portugal is €1,454 (Idealista data from the beginning of 2022) for a new or renovated property.
Determining whether you want a buyer’s agent or realtor
The most significant difference between a buyer’s agent and a realtor comes down to the certifications.
A buyer’s agent is a professional who assists in the buying and selling of properties and has obtained a real estate license.
A realtor works for the seller of the property as their client. A buyer’s agent would remain neutral, ensuring that you get the best deal possible.
Where to search for the best luxury villas in Portugal deals
You can easily find luxury villa deals online or at leading real estate agencies.
However, since buying a luxury villa in Portugal requires a high level of expertise, we suggest that you use an independent Buyer’s Agent to assist you. It is a beneficial way to find luxury villas in Portugal for sale because they usually have access to properties that are not officially advertised and can negotiate more affordable prices on your behalf.
Decide whether you want to buy a villa in Portugal to relocate or invest
Portugal is a great place to live. In this sunny country, you can still purchase a large luxury villa in Portugal at lower prices when compared to other European locations. With Portuguese residency, which you can obtain through the Portugal Golden Visa scheme you can also enjoy easy access to other EU countries.
Portugal is one of the best places to buy a house and invest in real estate, especially in the long term, considering the country’s potential and the margin of growth and profitability.
For both private and commercial purposes, Portugal reconciles its attractiveness and fascinating history with various advantages. The main one is the relationship between value and quality of life.
The Algarve, for instance, is a relatively cheap destination to buy a house in, especially when compared to other similar places. Portugal also has the advantage of being a European country with a competent and expeditious bureaucratic system, although bureaucracy has been known to take some time in certain situations.
Also, for those looking for a profitable real estate investment in the short or medium term, Portugal is quite an attractive area. Being one of the main tourist destinations in Europe, especially for northern European nationals, the Algarve is a region where real estate investments have lower risks.
Given the low Euribor and interest rates currently in place, buying a luxury house in Portugal for rent or local accommodation is a very low-risk investment. The most challenging part is to find the most suitable property for your specific needs.
Portuguese property sellers are not very flexible when it comes to changing or discussing property prices. The prices follow specific lists, and your best chance of getting a price review should be through a specialized agent.
Contract and paperwork
When buying a luxury villa in Portugal, it can be time-consuming to negotiate the right price for a property and procure all the documentation needed.
- Make your offer. Go to the land registry to discover the relevant data regarding the luxury villa in Portugal and, if necessary, adjust your offer price.
- Make sure the funding is in place
- Take another look at the property
- Sign the pre-sale contract, Contrato de Promessa de Compra e Venda, in Portuguese
- Sign the deed of purchase
Get help from experts
If you have found your dream luxury villa in Portugal, seek help from a specialized property investment firm such as Goldcrest.
As an independent local buyer’s agent, Goldcrest helps international families acquire sound property investments in their desired location in Portugal.
What are luxury villa prices like in Portugal?
Compared with other European countries, the price value for luxury villas in Portugal is well below the average. To purchase a luxury villa you will pay around:
- €5,600,000 in Guincho
- €6,900,000 in Parede
- €7,500,000 in Alcabideche
- €8,000,000 in Sintra
- €10,500,000 in Quinta da Marinha, Algarve
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Frequently Asked Questions About Luxury Villas in Portugal
Where to find the very best luxury private villas in Portugal?
Lisbon’s Metropolitan Area is the most expensive area to buy a luxury private villa in Portugal, with the m² priced at €3,757. The famous Algarve follows, with the price per m² ascending to €2,343. A paradise for golfers, the Algarve is surrounded by the best luxury villas on the green coast, costing at least €400,000.
How to purchase luxury villas for sale in Portugal?
When it comes to buying luxury villas for sale in Portugal, be realistic, take your time, don’t act on impulse, and, ultimately, make a decision that’s good for your family, your social life, and your finances.
How much do luxury villas in Portugal cost?
Compared with other European countries, luxury villa prices in Portugal are well below the average. The price per square meter in Portugal is €1,454 (Idealista data from the beginning of 2022) for a new or renovated property, but it depends on the region and style of the luxury villa that you are interested in.
Can I rent a luxury villa in Portugal?
Yes, you can easily find luxury rentals in Portugal. There are luxury villas for rent in Portugal on Airbnb, for example. A four-bedroom villa with its own private pool and parking in Faro costs €683 per night, while a six-bedroom villa in Lagos will set you back €2,000 per night.