This latest Property Market-Index report provides a comprehensive overview and ratings index of Portugal’s property hotspots, alongside insight into how international investment, regeneration, culture, heritage and tax incentives for affluent expats are fuelling growth in this marketplace.
Access Property Market-Index’s Portugal Property Hotspots Report 2024 – 2025 in full here.
The Portuguese property market continues to be fuelled by an influx of international investment and affluent expats moving to Portugal for lifestyle and investment reasons as well as safety, security, and freedom of access to the twenty-nine EU Schengen region countries.
This, combined with the Non-Habitual Residency (NHR) tax incentives, has made some of these markets highly desirable. This NHR tax regime offered significant tax savings to affluent expats on their non-Portugal-derived passive income.
The new tax regime that’s replacing NHR, often referred to as NHR 2.0, continues to bring many wealthy families, professionals and entrepreneurs to Portugal with a 0% tax on passive income apart from pensions and just 20% tax on professional income.
The report states that the Algarve property market saw an increase of 15% in the past year. In the recent summer months of 2024, locations such as Silves in Central Algarve saw a 10.9% increase, with Ferragudo seeing a 9.6% increase, followed by Lagos in the Western Algarve at 9.7% and Tavira, east of Faro, seeing a 9.5% growth.
The Golden Triangle areas such as Vale do Lobo, Vilamoura, and Loule have seen a growth of 5.8% in comparison and Albufeira saw similar growth this summer.
The market has been most affected due to a lack of supply, with only 20,000 properties built in the last year compared with 200,000 over a decade ago.
These two factors are ensuring that the Portugal real estate market is growing at double the pace of the rest of Europe and most of North America regarding property price values.
These findings consider the key metrics linked to buying property in Portugal’s most sought-after areas.
We have evaluated and weighted these metrics based on areas that index over 100 based on the following key factors:
- Security
- Regeneration investment
- Growth trends
- Culture
- Education
- Heritage
- Investment potential
- Land availability
- Infrastructure
- Connectivity
- Amenities
- Health and well-being
- Sustainability
To access this full report, click the link here.