Please note: all information included in this article is accurate as of the date of publication.
It cannot be denied that Portugal’s appeal lies in its pleasant climate, stretches of pristine coastline and rich culture. But, when it comes to buying property in Portugal, there’s far more to consider than simply lifestyle if you want to make a decision that’s in your best interest. The state of the property market and economic outlook is sure to play a big role in your decision and certainly should be at the top of your considerations as to where and when to buy property in Portugal. Therein lies the question, “Is now a good time to buy property in Portugal?”
Rising property values in Portugal
Property prices in Portugal are on the rise, with a 11.6% year-on-year increase seen in Q4 of 2024 (Eurostat). This comes at nearly three times the rate of the rest of the European Union on average. If you’re wondering if now would be a good time to buy property in Portugal, we can certainly say that the market is looking extremely positive. The Algarve continues a strong upward trajectory, with prices increasing between 9-14% annually, outpacing other regions. As of June 2025, the current value is €3,467 per sqm.
International interest & buyer demand
Demand from international buyers is on the rise in Portugal. A recent study by the United States Tour Operators Association found Portugal to be the second most popular destination for North American travellers in 2025 (Quinta Property Report). This coincides with direct flight paths to the Algarve, introduced by United Airlines in May 2025, making it increasingly easy to leave the States and experience the European lifestyle in a far more streamlined way. The main drivers are stability, safety and robust growth prospects.
Portugal’s legal framework makes it increasingly straightforward and inviting to buy property in Portugal, with no restrictions on property ownership for international buyers. Providing you hold a qualifying visa and a local tax number (Número de Identificação Fiscal or NIF), Portugal is your oyster to discover your perfect permanent residence, holiday home or investment.
Wealth-preserving tax regimes
With its wealth-preserving tax regimes, Portugal is becoming an increasingly popular choice for non-domiciles (a person who does not permanently reside in a country), offering a number of ways to gain extended stays and residency. The Golden Visa allows for non-property investments, with a minimum €500,000 into a qualifying fund, while the Digital Nomad Visa has gained traction among remote workers. The D7 Visa is designed for retirees and individuals with passive income (Quinta Property Report). Portugal clearly welcomes foreign buyers, who can not only benefit from the Portuguese lifestyle, but residency and tax relief too.
Luxury properties in Portugal’s market remain resilient
Portugal’s appeal as a high-end destination remains prominent. Equipped with high standards of quality, integrated services and privacy, buyers seeking premium property and experiences will find it in Portugal, with a particular favourability towards the Algarve, Lisbon, Cascais and Comporta (Portugal Property). In the first quarter of 2025, southern Portugal, including the Algarve, saw a 10% increase in sales volume of luxury properties (QP Savills 2025 Market Update Q1).
Great mortgage rates in Portugal
Mortgage rates in Portugal have stabilised after a period of fluctuations, with rates currently ranging from 2.5% to 3.3% (Santander). The Bank of Portugal states the average interest rate for new home loans is 3.22%. An increasing number of buyers are using mortgages to finance their overseas property purchase, with the reliance on having a large sum of cash to purchase no longer a deterring factor. It can be a smart choice, using less of your own money, with surplus capital available for other investment opportunities.
Infrastructure projects & development
Portugal has high-quality infrastructure, which has been heavily modernised and reshaped in recent years, successfully enhancing connectivity and accessibility throughout the country. This includes new road crossings, a new airport and investment in a high-speed railway, as well as an existing modern and reliable telecom infrastructure. Some notable infrastructural updates include the Lisbon-Porto high-speed railway, significantly reducing travel time by up to 25 minutes and increasing accessibility between the regions, with completion expected by 2032 (Railwaypro).
Much of the infrastructural developments currently underway, fall in line with Portugal’s Recovery and Resilience Plan (RRP), announced following the COVID-19 pandemic. It features planned reforms and investments to make Portugal more sustainable and resilient. Under the NextGenerationEU (NGEU) framework, all milestones and targets have a requirement to be met by August 2026.
