US investment in luxury homes shot up by 82% in Portugal in the second quarter of 2025 according to data from Sotheby’s Portugal International Realty.
And it has calculated that the average price of luxury properties sold in Portugal has gone up 22% on last year, with the Portuguese representing 54% of transactions in relation to the same period last year.
Lisbon concentrated 53% of national demand, followed by the Algarve (21%), Porto (12%), and Madeira (11%).
In the quarter under review, Portugal Sotheby’s International Realty recorded a 31% growth in turnover compared to the same period last year and a 34% increase in total turnover compared to the previous quarter, with investors from Brazil and the United Kingdom standing out in addition to Americans.
Two-bedroom apartments and four-bedroom villas in the premium areas of Lisbon and the Algarve were the main targets of demand, with the average value of properties sold rising 22% compared to 2024, but with the number of transactions decreasing by 6% compared to the same quarter.
In the case of overseas buyers from Brazil, demand was high for three-bedroom apartments in the centre of Lisbon.
Miguel Poisson, CEO of Portugal Sotheby’s Realty stresses that the considerable increase in the average ticket from US investors and an increase in the price of sold property reflecting not only the attractiveness of prime areas such as Lisbon, Porto and the Algarve, but also the growing maturity of the market, today marked by a buyer profile who is more informed, demanding and motivated by long term value.”
The estate agency chain highlights a new generation of investors that has had a growing share of the luxury segment, with an age group between 30 and 40, linked to the technology, financial and digital sectors.
Lisbon, Chiado, Principe Real, Lapa, Avenida da Liberdade and Restelo lead the prices per square metre, but international investment has gained ground in Comporta and Melides and the Alentejo coast in general with very sharp increase in values over the past five years.
In the north, the riverside area of Gaia and the historic center of Porto (Foz, Boavista and Baixa (premium) stand out for the development of boutique and luxury rehabilitation projects, which respond to the growing demand from French, American and Brazilian investors.
In the Algarve, international demand stands out in areas such as Vale do Lobo, Quinta do Lago, Vilamoura and premium areas of Albufeira, with Madeira registering a significant growth of 174% in turnover between January and August 2025, driven by the increase in demand from national and foreign investors.