Portugal's housing market sees robust sales growth and second‑home surge

Portugal’s real estate market continues to attract strong buyer interest. The Algarve remains the top destination for second‑home purchases, with exclusive areas such as Quinta do Lago and Vale do Lobo reporting that about 60% of transactions are for secondary residences. International buyers account for roughly 80% of these purchases, mainly from the United Kingdom and Ireland, and prices in the region exceed €13,000 per square metre. Emerging markets outside the Algarve, including Comporta and the West region, also show significant activity, with second homes representing 40% of sales and more than half of buyers coming from the United States, France and Germany.

In the broader Portuguese market, Eurostat data shows a 10.5% increase in residential property transactions in 2025, placing the country tenth among EU members for sales growth. Although this marks a slowdown from the 15.2% rise recorded in 2024, Portuguese home prices continued to climb at the fastest rate in the EU during the first quarter of 2026, indicating sustained demand despite growing buyer caution.