Portugal’s Property Hotspots Report 2024-2025

This latest Property Market-Index report provides a comprehensive overview and ratings index of Portugal’s property hotspots.

Access Property Market-Index’s Portugal Property Hotspots Report 2023 – 2025 in full here.

The Portuguese property market has become a magnet for international investment and affluent expatriates, driven by a unique combination of lifestyle, investment opportunities, safety, and easy access to the EU’s Schengen region.

Many are drawn to Portugal due to its relaxed pace of life, as well as the advantages that come with residency, allowing for seamless travel across twenty-nine Schengen region countries.

Key to this trend has been the Non-Habitual Residency (NHR) tax incentives, which offered substantial tax benefits to wealthy expats on their non-Portuguese passive income.

Although the initial NHR program has transitioned to a new regime, informally known as NHR 2.0, Portugal remains an attractive destination for affluent families, professionals, and entrepreneurs, with 0% tax on most passive income (excluding pensions) and a modest 20% tax on professional income.

The property market has also faced challenges, notably a significant decrease in new construction, with only 20,000 properties built last year, compared to 200,000 a decade ago. This limited supply, combined with high demand, has led to the Portuguese real estate market outpacing the growth of most European and North American markets in terms of property value.

This latest report examines the key factors that drive the Portuguese property market’s growth, focusing on highly sought-after areas.

Key metrics evaluated in this report include:

  • Regeneration investment
  • Growth trends
  • Culture, education and heritage
  • Investment potential – Land availability
  • Infrastructure, connectivity, and amenities
  • Health and well-being
  • Sustainability and security

To access this full report, click the link here.