Portugal Residential Real Estate Market Size, Share, Trends and Forecast by Type, and Region, 2025-2033

Report Format: PDF+Excel | Report ID: SR112025A42337

Portugal Residential Real Estate Market Overview:

The Portugal residential real estate market size reached USD 42.60 Billion in 2024. The market is projected to reach USD 106.93 Billion by 2033, exhibiting a growth rate (CAGR) of 9.65% during 2025-2033. The market is propelled by powerful foreign buyer demand, competitive residency programs such as the Golden Visa (albeit amended) and a profitable tax regime for non-resident residents. Tourism expansion drives short-term letting investment, particularly in Algarve, Lisbon, and Porto. Restrictive housing supply, increasing building prices, and city center regeneration schemes drive Portugal residential property market shares upwards. Also, Portugal's quality of life, climate, and security make it more attractive, and government investment and infrastructure development support sustained long-term residential market performance.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 42.60 Billion
Market Forecast in 2033	USD 106.93 Billion
Market Growth Rate 2025-2033	9.65%

Portugal Residential Real Estate Market Trends:

Foreign Investment and Residency Programs

One of the major trends in the Portugal residential real estate market is the rising foreign capital. Buyers from Europe, North America, and increasingly Asia are drawn by relatively affordable prices compared to other Western European countries, along with the country’s political stability and lifestyle appeal. While the Golden Visa program has undergone changes, it still significantly influences the market by attracting investors seeking residency in exchange for property purchases. Grammatically fine, but for clarity, it might read better as: Together with the Non-Habitual Resident (NHR) tax regime, Portugal has become a hotspot. This influx of international demand not only raises property values in urban centers like Lisbon and Porto but also boosts investment in secondary markets and coastal regions. Overall, foreign investment injects liquidity, drives competition, and sustains upward pressure on housing prices across Portugal’s residential sector.

Tourism and Short-Term Rental Market

Tourism is a cornerstone of Portugal’s economy and plays a crucial role in shaping residential real estate trends. Lisbon, Porto, and the Algarve attract Billions of international visitors annually, spurring strong demand for short-term rental properties. Many investors purchase residential units specifically for platforms like Airbnb or Booking.com, drawn by attractive rental yields. This demand for holiday rentals has fueled urban regeneration in central districts, converting older housing stock into modern, high-yield properties. While recent government regulations seek to balance tourism-driven demand with local housing needs, the sector continues to thrive. High occupancy rates, favorable year-round climate, and Portugal’s growing reputation as a cultural and gastronomic destination keep driving rental profitability. This dynamic makes tourism-linked real estate investment a significant driver, influencing both property values and availability in key markets thus surging the Portugal residential real estate market growth.

Quality of Life and Infrastructure Development

Portugal’s reputation as a safe, high-quality-of-life destination is strongly reflected in its residential real estate demand, supported by the fact that the country recorded over 1 million legal foreign residents by the end of 2023—a 33.6% year-on-year increase and the highest level ever recorded. Offering a mild Mediterranean climate, scenic coastlines, excellent healthcare, and a relatively low cost of living compared to other EU nations, Portugal attracts expatriates, digital nomads, and retirees alike. Infrastructure improvements, including transport networks, airport expansions, and urban mobility projects, further enhance accessibility and boost residential appeal, especially in Lisbon, Porto, and coastal hubs. Meanwhile, sustainable urban regeneration initiatives strengthen long-term investment attractiveness, particularly for eco-conscious buyers. Combined with cultural richness, modern amenities, and political stability, these factors transform Portugal from a holiday destination into a long-term residential choice, fueling consistent domestic and international real estate demand.

Portugal Residential Real Estate Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type.

Type Insights:

Condominiums and Apartments
Villas and Landed Houses

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes condominiums and apartments, and villas and landed houses.

Regional Insights:

Norte
Centro
A. M. Lisboa
Alentejo
Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Norte, Centro, A. M. Lisboa, Alentejo, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Portugal Residential Real Estate Market News:

In May 2025, Missoni announced its debut in Portugal’s real estate market with Aroeira Collections by Missoni, a €200 million residential and tourism project developed with Norfin SGOIC. Located on the Costa da Caparica, just 30 minutes from Lisbon, the 350-hectare complex will feature a hotel, apartments, villas, and homes, alongside luxury amenities including a PGA golf course, health club, pools, and sports facilities. Construction begins Q3 2025, with completion set for 2027.

Portugal Residential Real Estate Market Report Coverage:

Report Features	Details
Base Year of the Analysis	2024
Historical Period	2019-2024
Forecast Period	2025-2033
Units	Billion USD
Scope of the Report	Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment: Type Region
Types Covered	Condominiums and Apartments, Villas and Landed Houses
Regions Covered	Norte, Centro, A. M. Lisboa, Alentejo, Others
Customization Scope	10% Free Customization
Post-Sale Analyst Support	10-12 Weeks
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Key Questions Answered in This Report:

How has the Portugal residential real estate market performed so far and how will it perform in the coming years?
What is the breakup of the Portugal residential real estate market on the basis of type?
What is the breakup of the Portugal residential real estate market on the basis of region?
What are the various stages in the value chain of the Portugal residential real estate market?
What are the key driving factors and challenges in the Portugal residential real estate market?
What is the structure of the Portugal residential real estate market and who are the key players?
What is the degree of competition in the Portugal residential real estate market?

Key Benefits for Stakeholders:

IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Portugal residential real estate market from 2019-2033.
The research report provides the latest information on the market drivers, challenges, and opportunities in the Portugal residential real estate market.
Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Portugal residential real estate industry and its attractiveness.
Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

Need more help?

Speak to our experienced analysts for insights on the current market scenarios.
Include additional segments and countries to customize the report as per your requirement.
Gain an unparalleled competitive advantage in your domain by understanding how to utilize the report and positively impacting your operations and revenue.
For further assistance, please connect with our analysts.

Purchase Options Discount
Offer

Request Customization

Speak to an Analyst

Request Brochure

Inquire Before Buying

Benefits of Customization

Personalize this research
Triangulate with your data
Get data as per your format and definition
Gain a deeper dive into a specific application, geography, customer, or competitor
Any level of personalization

Get in Touch With Us

UNITED STATES

Phone: +1-201-971-6302

INDIA

Phone: +91-120-433-0800

UNITED KINGDOM

Phone: +44-753-714-6104

Email: sales@imarcgroup.com

Client Testimonials

IMARC made the whole process easy. Everyone I spoke with via email was polite, easy to deal with, kept their promises regarding delivery timelines and were solutions focused. From my first contact, I was grateful for the professionalism shown by the whole IMARC team. I recommend IMARC to all that need timely, affordable information and advice. My experience with IMARC was excellent and I can not fault it.

The IMARC team was very reactive and flexible with regard to our requests. A very good overall experience. We are happy with the work that IMARC has provided, very complete and detailed. It has contributed to our business needs and provided the market visibility that we required

We were very happy with the collaboration between IMARC and Colruyt. Not only were your prices competitive, IMARC was also pretty fast in understanding the scope and our needs for this project. Even though it was not an easy task, performing a market research during the COVID-19 pandemic, you were able to get us the necessary information we needed. The IMARC team was very easy to work with and they showed us that it would go the extra mile if we needed anything extra

Last project executed by your team was as per our expectations. We also would like to associate for more assignments this year. Kudos to your team.

We would be happy to reach out to IMARC again, if we need Market Research/Consulting/Consumer Research or any associated service. Overall experience was good, and the data points were quite helpful.

Arabian Plastic Manufacturing Company Ltd.

The figures of market study were very close to our assumed figures. The presentation of the study was neat and easy to analyse. The requested details of the study were fulfilled. My overall experience with the IMARC Team was satisfactory.

The overall cost of the services were within our expectations. I was happy to have good communications in a timely manner. It was a great and quick way to have the information I needed.

My questions and concerns were answered in a satisfied way. The costs of the services were within our expectations. My overall experience with the IMARC Team was very good.

I agree the report was timely delivered, meeting the key objectives of the engagement. We had some discussion on the contents, adjustments were made fast and accurate. The response time was minimum in each case. Very good. You have a satisfied customer.

We would be happy to reach out to IMARC for more market reports in the future. The response from the account sales manager was very good. I appreciate the timely follow ups and post purchase support from the team. My overall experience with IMARC was good.

IMARC was a good solution for the data points that we really needed and couldn't find elsewhere. The team was easy to work, quick to respond, and flexible to our customization requests.

IMARC did an outstanding job in preparing our study. They were punctual and precise, delivering all the data we required in a clear and well-organized format. Their attention to detail and ability to meet deadlines was impressive, making them a reliable partner for our project.

I wanted to express my sincere appreciation for your efforts in handling this matter. Your dedication and commitment have truly been commendable. It is evident that you have put in a tremendous amount of hard work and expertise into resolving the issues at hand. I would also like to take this opportunity to inform you that we are greatly interested

Overall, the deliverable was well organized and my experience with the project team was good. In particular, I appreciated how they responded when I requested additional information and the Japanese version.

The IMARC team were extremely professional and very cooperative. The team were also extremely flexible in making changes and modifications wherever required. The entire experience right from project kick-off to after sales support was fruitful and smooth.

I’d like to express my gratitude for the work you accomplished with the industry report. The way you responded to the requirements and delivered under tight timelines shows your expertise, exceptional work ethic and commitment to your customer’s success. The entire team and company are incredibly thankful for your dedication. Once again, thank you

The market reports from IMARC have been instrumental in guiding our business strategies. We found the reports comprehensive and data-driven, which helped us make informed decisions. The detailed insights and actionable data have consistently provided us with a competitive edge in a rapidly changing alcohol market.

One of the best things about IMARC is their flexibility and predisposition to tailor the reports and adapt to our needs. They are not just great in their researching and consulting solutions, but their service is unparallelled. We’ve worked with them a couple of times and we will keep working with them in future projects.

We recently commissioned multiple market research reports from IMARC, and the insights we received were invaluable. The depth of analysis, accuracy of data, and actionable recommendations have greatly enhanced our strategic decision-making.

The market estimates provided by your team were pretty much in line with what we were theorizing internally. Really appreciate the work on this.

The sale account manager and the service was excellent. The data and market trends gathered from the report was insightful and really assisted while planning future product and growth strategies.

The report is excellent and has good amount of data and our team is extremely happy with the information provided.

Thank you very much for your cooperation and post purchase support. We were really happy with the final deliverable, and the takeaways from the report.

Portugal Residential Real Estate Market