Luxury real estate in Portugal: the market in the Q1 2023

Houses near the ocean in Algarve, Portugal. Photo from Humphrey Muleba

CASAFARI provides a 360º, clean and organised view of the whole property market and allows you to take deep-dives into specific segments for you to better understand trends and behavioural patterns. But you already know that, right?

What’s new here is that recently our data was used to take a look into the luxury real estate in Portugal, coming to the conclusion that these amazing properties are concentrated in four different places with an uneven split.

Lisbon has 86% of all luxury apartments and 48% of houses, while Porto has 6% and 7% respectively and Faro concentrates 4% of high-end apartments and 21.5% of the houses. Finally, comes Madeira Island with 4% of the stock for luxury apartments and 2,7% of houses.

Let’s see how they are spread in each of these areas.

The Lisbon property market for luxury real estate

In the Lisbon district, this concentration is even more dense, 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 concentrare luxury apartments are Santo António , Avenidas Novas e Belém. Santo António has the highest price per square metre (€9,499), but Avenidas Novas is the one with the highest growth in prices on a year-over-year comparison, reaching an increase of 5,74%.

As per houses, they can be found mainly in Belém, Estrela and Alvalade neighbourhoods. Estrela has the highest price per square metre of the trio, with an average asking price of €8,497/m², while Alvalade stands out for having had a decrease in 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 prices per square metre for apartments, while the other neighbourhoods saw decreases in 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. 

The prices per square metre have risen significantly for both kinds of properties in Funchal: for apartments, there was an increase of 15.4% in São Martinho and 17.6% in Sé neighbourhoods. As per houses, São Martinho’s been through a 26.7% rise and Santa Maria Maior increased average asking prices per square metre by 16.7%.

The previous data are derived from a market report made by CASAFARI about the Q1 2023. We took into consideration luxury properties (apartments or houses) over 1MM euros, disconsidering those that needed to be refurbished. If you’re interested in having similar reports for your company, get in touch with your Account Manager!

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Houses near the ocean in Algarve, Portugal. Photo from Humphrey Muleba

Luxury Market Report Q1 2023