What is the most popular place to invest in Portugal?

Portugal is not a small country, but many people only know Lisbon and Porto and maybe The Algarve as a region. But what is the most popular investment area in Portugal? At WESTMARK estate agency we obviously know where most properties are being sold, we are in Algarve for a reason.

In 2023 in Portugal 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.

Prime investment area is The Algarve – 35% :

The Algarve is the most sought-after regions for foreign investors to buy properties and start businesses. 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. Most popular cities in the Algarve are Albufeira, Vilamoura and Loulé.

Greater Lisbon area comes second – 25% :

Portugal’s capital, Lisbon, and its metropolitan region account for around 25% of foreign investment in the country. lisbon offers a unique combination of culture and history, making it an attractive choice for international investors. The neighborhood of Chiado is the most expensive area with an average price of € 7.000 per square meter! Due to the shortage of local housing and limitations of the Alojamento Local regulations, Lisbon became less attractive for investors who are looking for properties to let.

Porto on a thirth place – 15%:

The historic city of Porto gets a nice third place with 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.

Alentejo last but not least – 10% :

Located in south-central Portugal, just above the Algarve we are finding the Alentejo which accounts for 10% of foreign investment in the country. Mainly due to the rising of property rises in The Algarve area, people with lower budgets tent to move toward the Alentejo. Further away from the airports and the beaches, but more authentic and rustic lifestyle is to be found here.

At WESTMARK estate agency we are focused on the Algarve area. When you want our expert guidance in your property search outside the Algarve we are happy to do so. Just reach out an tell us your needs. We will make you a customized proposal to find your dream property. info@westmark.pt