Extravagant equipment, spacious living areas, one or two pools, a roof terrace. Real estate in the luxury sector offers the best comfort at top locations. Buying luxury real estate in Portugal is a rewarding, lucrative investment. In this detailed guide, we take a look at how to invest in luxury real estate in Portugal.
What is luxury real estate?
Luxury real estate has to be unique and exclusive—in a good way, in a desirable way. Prime investors will pay a premium for a property that’s perceived to be superior. A trophy address, like Comporta, Lisbon, or Tróia, adds value. Many luxury buyers seek the natural beauty of a waterfront location, or at least views of a river, ocean, or lake. Others want the countryside or mountain-side views.
Why buy luxury real estate in Portugal?
According to Jornal Económico, the wealthiest are investing $1.000.000 or more in European markets. “There is growing interest in Portugal, where the US dollar is strong”, states the newspaper.
Portugal is a country with beautiful coastlines and an idyllic interior. The Mediterranean climate contributes to wellbeing. Portugal also offers tax incentives for newcomers, especially retirees. That is why more and more people are establishing their primary or second houses in Portugal. Investing in Portuguese luxury property is also profitable.
There are no restrictions on foreign property ownership in Portugal. Transaction costs are generally low. Through its Golden Visa, Portugal grants a five-year residency permit to non-EU citizens. Investing €500,000 in property in pre-designated areas of Portugal allows holders to work or study, and travel to Schengen countries. Also, they can apply for permanent residency after five years.
What are luxury real estate prices like in Portugal?
Portuguese luxury property is still very inexpensive compared with other European countries:
- For €8.900.000 you can buy a luxury villa (915 sqm.) in Príncipe Real, central Lisbon. A six-room luxury apartment in Avenida 24 de Julho costs around €7.950.000
- In Boavista, a high-end area in Porto you can get a villa for €915.000 (222.7 sq.m.)
- For €12.600.000 you can get a mansion in Alentejo (3380 sq.m.) or a luxury villa in Oeiras, Paço de Arcos (1616 sq.m.)
- You can buy an isolated villa in Lagos, in the Algarve, for €8.000.000 € (1011 sq.m.)
- In Cascais, you can find villas for around €6.990.000 (605 sq.m.) in Alcabideche. In Monte Estoril, a penthouse duplex with an ocean view may cost €6.800.000. In Quinta da Marinha a five-room villa can be purchased for €6.700.000 (1886 sq.m.)
- In the Grândola area, in Comporta, a luxury farm costs around €962.000 (600 sq.m.). In Tróia you can find a four-room luxury villa for €2.750.000
- A mansion in Sintra can cost you €6.500.000 (759 sq.m.)
What are the most expensive areas to buy real estate in Portugal?
- In Lisbon, around Marquis of Pombal Square and Avenida da Liberdade
- In Porto, at Foz and Boavista
- The Golden Triangle in the Algarve
- In Cascais, Quinta da Marinha, Estoril, Guincho
- In Setúbal, Tróia and Comporta
- Avenida Marginal area, that connects Lisbon to Cascais
Luxury real estate in Lisbon
- Market prices reach €10.000 per square metre in Chiado, Barata Salgueiro (near Av. da Liberdade) and Av. da República
- Top five of the priciest neighborhoods include Bairro da Bica and Sé, both with price tags above €8.500/sq.m.
- Santa Marta is in sixth place, followed by Bairro da Andaluz (near Av. Duque de Loulé) and the São Paulo/Boavista/Conde stretch.
Luxury real estate in Porto
- Porto, the country’s second city, seems to be a better option than ever for investing in luxury real estate
- Often with higher profitability than that seen in Lisbon (according to Confidencial Imobiliario)
- The historical center of Porto leads in foreign investments. Its volume surpassed €200 million in 2019.
Luxury real estate in the Algarve
- Quinta do Lago, Vale do Lobo, and Almancil—the Golden Triangle of the Algarve—are the most popular areas to buy a luxury property in Portugal.
- Tavira–a symbol of UNESCO heritage–is more famous among the Portuguese. Its luxury real estate market is particularly lucrative.
- You can find some of the most expensive properties in Portugal in the Algarve.
Luxury real estate in the Alentejo
- Known for its vast plains and agricultural properties
- The Alentejo region is a haven for rural tourism in Portugal
- Splendid coastal landscapes along the coast from Sines to the Cape of São Vincente.
Luxury real estate in the Centre
- Luxury tourism value regions of intact nature next to the Atlantic Ocean such as Comporta and Tróia
- Melides area is part of a strategy to make the region a golf tourist destination for a foreign elite
- Herdade do Pinheirinho, 750m from the ocean has a golf green in development, cleared in the pine forest
- The landscape between Tróia and Melides is about to change with foreign investment.
How to pick the perfect luxurious villa
It is important to understand in advance which features characterize a luxury property. A high price alone is not enough. The property should also be unique and as exclusive as possible. Buyers prefer proximity to luxury activities. High-end shopping, fine dining, and the arts, as well as being near other luxury properties. A familiar street also creates added value. Many interested parties prefer a certain location or at least an exclusive view.
Typical features of a luxury apartment or villa are:
- Privacy and security, sometimes to the point of seclusion
- Aesthetics, individual architecture, and dramatic detail
- An integrated wellness and fitness area
- Large rooms and window fronts
- Open kitchens including high-quality designer furnishings
- Spa bathtubs, separate showers, and double washbasins
- High-quality materials and furnishings often complemented by smart home solutions and high-tech elements
- Technology: motion detectors, car lifts, or temperature-controlled wine cellars.
How to find Portugal’s best luxury real estate deals
Some of the best websites to find luxury real estate deals in Portugal include Idealista, Sotheby’s, Christie’s, Engels&Volkers, and Imovirtual.
Since buying a luxury property requires expertise, use an independent buyers agency. Goldcrest is a local buyers agent specializing in matching investors to their dream homes or properties for investment. Speak to a Goldcrest Advisor today and let’s get you moving forward in achieving your goals.
How to ensure you’re paying a fair value for real estate
When buying a luxury home, buyers will want to take the path of least resistance. The last thing luxury home buyers will want to do is to rush through the buying journey. Luxury homebuyers can ensure their purchase of a luxury home is a hitch-free decision by using the following tips below.
- Look at the comps. Look over a Comparative Market Analysis (CMA). An agent can help you with the process.
- Work with a great realtor who specializes in luxury home purchases and sales. They can help you find a luxury home. Realtors know the local areas where luxury homes are. They are familiar with the features, services, and tax rates of those communities. They can be your guide to find homes and provide information about the process of buying a luxury home.
- Pricing wise, think about how much you want the property in question
- Get an appraisal
Where to find €500.000+ real estate?
The Algarve, Lisbon’s center, Quinta da Marinha, Guincho, Comporta, Tróia and Porto. These are the most popular places in Portugal to buy luxury prime real estate.
Can I get a Golden Visa for buying real estate in Portugal?
The Portuguese Golden Visa has proven to be one of the most popular schemes in Europe. There are several ways to get a visa. The most popular is an investment of €500.000 in freehold property in Portugal. Do note that from July 2021, certain real estate investment restrictions will apply. Namely, investors won’t be able to buy property for the golden visa in urban areas like Lisbon, Porto, or the coastal towns around the Algarve.
There is a reduced version of this at €350.000 but it has special requirements. This visa will allow you to travel across Europe within the Schengen Zone. After five years of the title, you can apply for permanent residency within Portugal. After six years you can apply for citizenship.
Buying luxury real estate in Portugal with confidence
Some steps that can make your luxury property investment process easier:
- Using a buyer’s agent could save you a ton of time and money. Agents may be able to give you access to more listings and also help you avoid paying too much for a property. They help with negotiating the price/sale conditions, recommending services you’ll need, and paperwork.
- Portugal approved special legislation designed to attract foreign investment. Property investors (non-EU citizens) enjoy residency permits -a privileged entry into Europe. This is something worth taking advantage of.
- Due diligence may be boring but it’s critical to get it right.
- If you’re starting, always get a property inspected. Even seasoned investors would be wise to get them.
- Some parts of real estate investing are a lot of fun. Some aren’t. Due diligence requires time, effort, and attention to detail—but it’s worth it. It will save you from costly mistakes and provide you with opportunities to get better deals.
- Real estate projects are also complex and need a team. The parties should have responsibilities, tasks, and costs defined within contracts and agreements. Have your advisor review those documents for appropriate form and content.
Get in touch
If you have found your dream property in Portugal, seek help from a specialized property investment firm such as Goldcrest. As an independent local’s buyers agent, Goldcrest helps international families get sound property investments in their desired locations in Portugal.
Frequently asked questions
What is luxury real estate?
There is no ready-made checklist by which you can tell whether the property belongs to the luxury category. Still, some features characterize an upscale property. These include a first-class location, high-quality interior fittings such as marble worktops, professional kitchen appliances, and tailor-made cupboards as well as hotel-like services such as concierge service, a first-class fitness center, or a spa center. Still, not every high-end home is created equal. Often it is the unique characteristics that separate luxury properties from general ones. This includes, for example, buildings designed by a renowned architect.
Where can I find luxury real estate in Portugal?
Lisbon center, the Algarve (Golden Triangle), Porto (Foz), Linha de Cascais (around Avenida Marginal), Quinta da Marinha, and Guincho (also in Cascais), Sintra, Tróia, Comporta, and Melides are prime locations to find luxury real estate properties in Portugal. These are frequently located in the ocean proximities and around natural settings.
What are luxury real estate prices like in Portugal?
Portuguese luxury property is still very inexpensive, in comparison with European prime locations.
What to look out for when buying luxury real estate in Portugal?
- Enlist the right real estate agent
- Master the financial considerations
- Know what you want ahead of time
- Do take your time
- A picture’s only a 1,000 words
- Familiarize yourself with the area
- Home inspection definitely matters
- You will need agents specialized in the top-of-the-range home features. Your average home inspector is likely to be unqualified for this.
- Keep an eye on resale value