5 Curiosities about the Luxury Property Market in Portugal

The luxury real estate market in Portugal is on the upswing and, contrary to what was thought, the pandemic crisis was not an obstacle to these transactions. The real estate market responded positively to the circumstances of the situation we are still in. Unexpectedly, the luxury segment is one of the winners and continues to be on the winner's podium. Do you know which nationality is the biggest buyer of these luxury properties? Find out the answer to these and other questions about this segment of luxury real estate in Portugal, which continues to rise in the Covid-19 period.

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1- Do you know how to recognise a luxury house in Portugal?

To the question "What sets a luxury home apart from the rest?" the answer may be simple - size! Yes, size is certainly a distinguishing feature that is easy to spot when walking past on the street, but luxury homes have other features that set them apart from others. These are:

• Location

Luxury properties are often located in privileged areas some distance away from major city centres. The outskirts of cities are the most desirable areas for building such homes. It is usually a quieter area. So, when architects or developers build a luxury home in an exclusive location, it is important that the property also offers good access to all amenities such as supermarkets, restaurants, schools or public transport.

The location of luxury homes can be close to other homes with the same features. For this reason, they are designed to provide privacy and comfort by being well-demarcated and having limited access.

• Size

A luxury home is always large and has several rooms, many more than usual, such as bedrooms, bathrooms, kitchen and living room. Luxury homes have a playroom, offices, outdoor kitchen, laundry room and garage to ensure comfort and privacy for every owner.

When we talk about a luxury villa, it is rare that it does not have a garden around the house, and if we are referring to a luxury apartment, it is incorporated into a condominium with common recreational areas such as a swimming pool, gym, reception or even restaurants. These areas complete the idea of well-being and bring what makes it different from the others: Luxury.

• High-quality materials

 Luxury is, above all, a feeling that is reflected in us. It can be through the space, the amenities the home offers, or even the materials used. It is the details that make the difference and it is the materials that add strength, quality and durability to the homes. Details give the impression of exclusivity, especially when they are made by hand or on a small scale.

Certain materials are often found in villas or luxury homes. They have been on the market for several years and guarantee sophistication, quality and durability. These materials can be quartz tiles, better known as Silestone, Dekton or other materials that are also resistant to stains or impacts. Another speciality is home automation in luxury homes. What is home automation? It is the technology that is responsible for managing the home and reducing effort in daily tasks. This technology is easy to use yet contributes to a more sustainable home by reducing energy costs and properly managing natural resources.

• Surprise Factor

 Luxury homes are not the same as conventional homes and always have a surprise factor. These properties are not only meant for daily family life but also have living spaces for friends and family. We will now list some of these rooms that always have a surprise factor when you first visit. You might come across a sauna, a jacuzzi, a wine cellar, a cinema room or even an apartment attached to the main house where you can have visitors for a few days.

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2- Do you know which nationalities are the biggest buyers of luxury properties in Portugal?

Portugal is one of the most sought-after destinations for buying property. Demand for luxury properties was pronounced before the pandemic crisis, but had a brief dip in March 2020. Demand and sales recovered exponentially, shortly after the initial slump in the country, and the trend reached several prospective buyers of foreign nationality. The nationalities most likely to buy luxury properties in Portugal are investors from neighbouring Spain, the country with the highest percentage of luxury property buyers in Portugal, followed by English, North Americans, French and Germans.

The areas of Portugal where demand for luxury property is highest are in the Algarve, ahead only of the Lisbon region. The nationalities most interested in buying a house in the Algarve are British, Dutch, French, German and finally Spanish. These nationalities have a preference for buying luxury properties by the sea, with no clear choice of the best city or region. Foreigners have made fewer transactions, but the balance was higher in 2019 in any case.

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3- How do foreigners invest in the Portuguese real estate market?

Since 2012, there have been real estate investments through Golden Visas. These visas offer the possibility of obtaining a residence permit in Portugal when buying a property to invest in or start a business. This measure will have an already announced end, at least as we know it. Until the end of 2021, it will still be possible to buy or invest in a house in any region of Portugal. From 2022 this will only be possible in inland regions such as Alentejo or Castelo Branco.

Another measure taken for foreign investment in Portugal in the real estate market is the purchase of a holiday home. It is very common for foreigners to have a second home where they enjoy their holidays and rent it out as local lodgement the rest of the time. This is only possible if there is a team that manages these temporary rentals. Casas do Barlavento provides this excellent service and keeps the owner regularly informed of all matters concerning their home. Contact our rental team to learn more about this service.

Fotografia de Avi Werde - Unsplash

4- Where can I find luxury properties in Portugal?

Luxury properties in Portugal are spread across all regions of the country, including the islands. These houses have different characteristics depending on which region of the country they're located.

The Alentejo, for example, is a region with an agricultural tradition, where the houses of the luxury segment are estates. These are large properties with agricultural land, gardens and usually are more than one house. They are located on the outskirts of inland towns and have completely renovated homes.

In the Lisbon region, most luxury properties for sale are fully renovated palatial homes with private gardens and their location can be in the city centre.

In the Algarve and all coastal regions of the country, luxury properties are usually designed by architects who place great emphasis on conveying exclusivity, elegance and comfort. These homes usually have fantastic sea or river views or even panoramic views. The locations chosen are secluded to ensure privacy but with good access to the nearest town. See an example of a luxury villa for sale in Meia Praia in Lagos.

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5- Why buy a luxury property in the Algarve?

• The climate

The Algarve is increasingly being considered by investors as a property investment area, largely due to the climate. After several consecutive lockdowns, people have started to consider a lifestyle change. The home office work has facilitated this change, and many have rushed to the Algarve, where the sun shines more than 300 days a year. In the case of a new possible lockdown, the luxury homes, combined with the extensive gardens around them, manage to quell the need for a pleasant outdoor space to spend quality moments with the family. As mentioned earlier, these luxury homes usually have unobstructed views of the sea or the countryside, with panoramic views framing the magnificent surroundings. The climate will not prevent you from enjoying the outdoor living space.

• How to get there

The Algarve has excellent road access and the motorway - Via do Infante - allows you to travel from one end of the region to the other in a short period of time.

You can also travel around the country by high-speed train, which connects with regional or international trains if you wish to travel abroad by this mode of transport.

Faro Airport offers direct flights to other countries and also domestic flights. In a few minutes, you can reach the northernmost airport of Portugal or in a few hours the islands of the Azores and Madeira.

• Activities

When the warm climate is felt all year round, activities complement the feeling of quality of life in the Algarve. Among the many activities on offer, we highlight some of the most popular in the region.

Golf is a sport with a certain tradition among Portuguese and foreigners who visit us. It is common for players to take intentional holidays to spend long days on the best golf courses in the country. One of the best times to play is from September to November when it is not so hot and there are few tourists in the cities. In addition to spending their holidays playing the sport, more and more people are buying homes in resorts with golf courses. Combining two passions in one, they live and coexist closely with the sport they love so much. Here is an example of a luxury house for sale in a resort with a golf course in Lagos, Meia Praia.

The Autódromo Internacional do Algarve hosts the most prestigious competitions in the world. Every month the programme is renewed, and motorsport lovers are encouraged to attend. Competitions such as the MotoGP, the Superbike World Championship or the European Le Mans Series have already raced over the asphalt of the Portimão Autodrome. Besides the competitions, the place is also open for private activities where you can try out powerful cars or even participate in races at the Kartodrome.

The region landscapes are always different, and you can walk in the mountains, in the city or by the sea. Well-being is a concern for everyone, and in the Algarve, you can enjoy activities that transport you and connect you with nature. Between hiking, cycling or yoga retreats, enjoy the less-touristy side of the region and get involved with the more natural side.

Photo by Robert Ruggiero - Unsplash

Luxury is synonymous with exclusivity, but its actual definition varies from person to person. That is the idea of definition for a luxurious house. It must be designed according to the owner's preference, have some special features that stand out from the ordinary, and it must also convey well-being.

Make an appointment today with the team at Casas do Barlavento and get to know the luxury properties we have in our portfolio.