Luxury real estate in Portugal: the market in the Q1 2023
According to CASAFARI’s Q1 2023 market report, analysed using CASAFARI Area Insights, luxury real estate in Portugal—properties with asking prices over €1 million, excluding units needing refurbishment—is concentrated across four main regions: Lisbon (86% of luxury apartments, 48% of houses), Faro/Algarve (4% of apartments, 21.5% of houses), Porto (6% of apartments, 7% of houses), and Madeira Island (4% of apartments, 2.7% of houses).
The Lisbon property market for luxury real estate
In the Lisbon district, this concentration is even more dense—as seen in how Porta da Frente Christie’s analyses the luxury property market in Portugal—with 98% of all luxury apartments in Lisbon district spread throughout the cities of Lisbon, Cascais and Oeiras. When it comes to percentages, 69.3% of high-end apartments are in the Portuguese capital, 23.9% in Cascais and 5% in Oeiras. Now talking about luxury houses, the split is 57.4% for Cascais, 13.8% for Sintra and 9.7% for Oeiras.
In the city of Lisbon, the neighbourhoods that most concentrate luxury apartments are Santo António, Avenidas Novas and Belém. Santo António recorded the highest average asking price per square metre (€9,499/m²), but Avenidas Novas saw the highest year-over-year asking price growth at 5.74%.
As per houses, they can be found mainly in Belém, Estrela and Alvalade neighbourhoods. Estrela has the highest average asking price per square metre of the trio, at €8,497/m², while Alvalade recorded a decrease in average asking prices per square metre of 9.3% due to the quality of the luxury units available in relation to other places.
The scenario of luxury homes in Porto
The Porto property market in the luxury real estate segment is mostly divided between Porto city, Vila Nova de Gaia and Matosinhos. Together, they add up to over 90% of the market stock.
Porto, capital of its namesake district, follows the pattern of Lisbon and has a high concentration of luxury properties: over 73.1% of the apartments and more than 47% of the houses. They’re also unevenly distributed inside the city, with over 90% of high-end apartments and 80% of the houses found in the same three neighbourhoods.
As a highlight, we can see that the Aldoar, Foz do Douro e Nevogilde area, that leads with most units both for apartments and houses, had the highest growth in average asking prices per square metre for apartments, while the other neighbourhoods saw decreases in asking values.
Luxury real estate in Algarve
Another place where this pattern is repeated is in Faro district, where only two parishes account for 54% of high-end apartments and 49% of the houses.
The city of Loulé has the most market share for high-end properties, with 33.3% of the apartments and 36.4% of luxury homes and they’re mostly situated by the sea, in Quarteira, Almancil and São Clemente areas.
Loulé is followed by Lagos when it comes to luxury apartments, with 20.8% of the properties, and Albufeira takes the second place for houses (12.1%).
Luxury homes in Madeira Island
At Madeira Island, the absolute highlight is the city of Funchal, capital of the archipelago. It accumulates almost 100% of all luxury apartments in the islands (95.2%), with the neighbourhoods of São Martinho (58.5%) and Sé (22.4%) at the forefront. On the subject of houses, luxury homes are more spread out, with 24.1% in São Martinho and 20.4% in Santa Maria Maior.
Average asking prices per square metre have risen significantly for both kinds of properties in Funchal: for apartments, asking prices increased by 15.4% in São Martinho and 17.6% in Sé neighbourhoods. As per houses, São Martinho recorded a 26.7% rise and Santa Maria Maior increased average asking prices per square metre by 16.7%.
The previous data are derived from CASAFARI’s market reports for Q1 2023. The report analysed luxury properties (apartments or houses) listed with asking prices over €1 million, excluding units requiring refurbishment. Real estate professionals seeking market data for Portugal can sign in to the CASAFARI platform to explore property analytics.
Frequently asked questions
How does CASAFARI define a luxury property in the Q1 2023 Portugal market report?
In the Q1 2023 Portugal market report, CASAFARI defines luxury properties as apartments or houses listed with an asking price over €1 million. Properties requiring refurbishment were excluded from the dataset to reflect market-ready luxury stock.
Which Lisbon neighbourhoods have the highest asking prices for luxury homes in Q1 2023?
According to CASAFARI data for Q1 2023, Santo António recorded the highest average asking price per square metre for luxury apartments in Lisbon city at €9,499/m², while Avenidas Novas led year-over-year asking price growth at 5.74%. For luxury houses in Lisbon city, Estrela recorded the highest average asking price of €8,497/m².
Where is luxury real estate concentrated in Porto and the Algarve?
In the Porto district, over 90% of luxury stock in Q1 2023 was concentrated in Porto city, Vila Nova de Gaia, and Matosinhos, with Aldoar, Foz do Douro e Nevogilde leading in listings and apartment asking price growth. In the Faro district (Algarve), Loulé held the largest share of luxury listings with 33.3% of apartments and 36.4% of houses, followed by Lagos for apartments (20.8%) and Albufeira for houses (12.1%).
How did luxury property asking prices perform in Funchal, Madeira in Q1 2023?
Funchal accounted for 95.2% of Madeira Island’s luxury apartments in Q1 2023. Average asking prices per square metre rose by 15.4% for apartments and 26.7% for houses in São Martinho, by 17.6% for apartments in Sé, and by 16.7% for houses in Santa Maria Maior.
How can real estate professionals track luxury property market trends in Portugal?
Real estate professionals can use CASAFARI Area Insights to monitor property distribution, asking prices per square metre, and market trends across Portuguese municipalities and parishes. Developers building custom applications can consult the Area Insights API documentation in English.