The 5 most sought-after places to invest in Portugal

April 29, 2024

What were the most sought-after locations in Portugal in 2023? Over the years, Portugal has become a popular destination for foreign investors seeking attractive real estate opportunities. Whether for retirement, investment or simply to enjoy the Mediterranean lifestyle, many Portuguese towns are attracting increasing numbers of foreigners.

In this article, we explore the most popular regions where foreigners have invested in Portugal. In 2023, 136,499 homes were sold for a total of 28 billion euros. These results represent reductions of 18.7% and 11.9% respectively in number and value compared to 2022, the lowest in seven years.

1. Algarve – 35% :

TheAlgarve, located in southern Portugal, is one of the most sought-after regions for foreign investors. Famous for its magnificent beaches, sunny climate and world-renowned golf courses, the Algarve attracts buyers from all over the world. Around 35% of foreign investment in Portugal is concentrated in this region, where luxury villas, sea-view apartments and traditional houses are particularly sought-after. In the Algarve , sales of homes to foreign buyers accounted for 27.2% and 38.5% respectively of the total number and value of transactions in the region. We’re property hunters, we’ll help you find what you’re looking for.

Algarve

2.Lisbon and the Metropolitan Region – 25% :

Portugal’s capital, Lisbon, and its metropolitan region account for around 25% of foreign investment in the country. This dynamic region offers a unique combination of culture, history and modernity, making it an attractive choice for international investors. Neighborhoods such as Chiado, Alfama and Belém are particularly popular for property purchases, with strong demand for renovated apartments and character properties. Here are 10 sights to see in Lisbon. Villa Feria specializes in the area, so contact us and we’ll help you find the property that’s right for you.

Praça do Comercio, Lisbon

The Setúbal region, located in the south of Portugal, offers great potential with 5.1% of total insvestment em 2023. Known for its breathtaking coastal scenery, renowned vineyards and rich cultural heritage, Setúbal is increasingly attracting investors. Diversified investment opportunities are available, ranging from residential real estate to tourism and vineyard projects. With easy access to Lisbon and the surrounding area, Setúbal presents an ideal setting for investors seeking to benefit from the region’s economic and tourism dynamism. It’s one of the most popular areas for French speakers, so get in touch with us and we’ll help you not only with finding the property, but with the whole process and installation. We’ve written an article on investing in Costa da Caparica, which you can find here.

Fonte da Telha, South Lisbon

3. Porto and Northern Portugal – 15%:

The historic city of Porto and its surrounding region account for around 15% of foreign investment in Portugal. Famous for its port wine and iconic architecture, Porto attracts investors looking for charm and authenticity. Neighborhoods such as Ribeira and Foz do Douro are in high demand, as are the surrounding Douro wine regions. Dynamic university towns such as Braga and Guimarães are also attracting growing interest from foreign investors.

Don Louis I Bridge, Porto

4. Alentejo – 10% :

Alentejo, located in south-central Portugal, accounts for around 10% of foreign investment in the country. This picturesque rural region is appreciated for its rolling landscapes, historic villages and tranquil pace of life. More and more foreigners are attracted to the Alentejo to invest in charming properties, such as restored farmhouses, wine estates and country houses, offering a peaceful retreat from the hustle and bustle of urban life. Villa Feria also works in this area and can help you with your investment project.

Porto Covo, Alentejo

5. Other Regions – 15% :

Apart from the main regions mentioned above, around 15% of foreign investment in Portugal is spread across other locations throughout the country. These include diverse destinations such as the island of Madeira, the coastal regions of central Portugal, as well as historic towns and unspoilt villages. These regions often offer unique investment opportunities, from coastal properties to rural estates and character properties.

Peniche

In conclusion: the curious Lisbon

Portugal clearly continues to attract a growing number of foreign investors, drawn by its favorable climate, high quality of life and attractive investment opportunities. While certain regions such as the Algarve, Lisbon and Porto remain popular choices, other locations across the country are also beginning to gain in popularity with international investors. By providing percentages, we’ve been able to highlight Portugal’s diverse appeal as a property investment destination for foreigners. Contact us, we’re property hunters who can help you with your investment in this wonderful country.

Ready to overcome your fears of expatriation and meet us in Portugal?

If you liked this article, please click on the “Like” button below and share it. And don’t forget to follow us on our social networks: our Facebook group “Amoureux du Portugal”, our Facebook page “Vivre au Portugal” and our Instagram “Vivre au Portugal”.