The Portuguese real estate market continues to show strong momentum in 2025, especially with regard to property transactions carried out by foreign investors. In the Lisbon-Cascais corridor, more than 70% of transactions were carried out by foreign buyers in the first quarter of the year, highlighting the crucial role these investors play in property appreciation and the overall volume of real estate business in Portugal. This phenomenon is not limited to the capital and its surrounding areas—it extends to other regions such as the Douro, where foreign interest, particularly from Brazilians, has been growing significantly.

Profile and impact of foreign investors on real estate transactions

The most recent data indicates that in the Lisbon-Cascais corridor, 953 transactions were recorded in the first quarter of 2025, of which approximately 74% were carried out by foreign buyers. Brazilians lead this group, accounting for more than 20% of the transactions, followed by Americans, who exceeded the threshold of 100 purchases during the period under review. This strong foreign presence not only contributes to the total business volume but also influences the average property prices, which have been steadily rising.

In the Douro region, foreign investment is also significant, with Brazilians representing 29% of transactions on the northern bank and nearly 46% on the southern bank of the river. This diversified interest in various parts of the country demonstrates the growing appeal of the Portuguese real estate market for international investors, who are seeking everything from urban apartments to luxury properties and tourism-oriented real estate.

Geographical distribution of real estate transactions in Portugal

Lisbon remains the main hub of the real estate market, accounting for 33.5% of all national transactions, followed by Porto with 13.5% and Setúbal with 10.5%. Other districts such as Braga, Coimbra, Aveiro, Faro, Santarém, Leiria, and Viseu complete the top 10, making up nearly 90% of all real estate transactions in Portugal. This concentration reveals a market strongly focused on urban centers and coastal regions, where the demand for housing and investment is highest.

Property types and characteristics of the most transacted real estate

When it comes to property types, apartments dominate the market, representing 51% of all transactions, followed by houses (villas) at 23.6%. Among the apartment typologies, T2 units (two-bedroom) are the most sought after, accounting for 21% of sales, followed by T3 (three-bedroom) units with 16.3%. T3 and T2 houses also show significant demand, reflecting the preference for family housing in suburban and peri-urban areas.

Market trends and evolution in 2025

The total transaction volume has been growing, with a year-on-year increase of around 20% in the number of deals during the first quarter of 2025, reflecting the market’s dynamism. In terms of value, the total transacted amount reached nearly 2 billion euros, marking a 35.7% increase compared to the same period last year. This growth is driven not only by the number of deals but also by the appreciation of average prices, particularly in high-demand areas.

Despite rising mortgage costs and global economic uncertainties, the Portuguese market remains resilient, benefiting from strong domestic demand and increasing interest from international investors. The diversity of nationalities involved in property transactions—including Brazilians, Americans, Angolans, French, and British—contributes to the sector’s stability and expansion.

The role of real estate transactions in urban and economic development

Real estate transactions are not just indicators of economic activity; they are also drivers of urban transformation. Foreign investment has propelled the rehabilitation of central areas and the development of new residential and tourism projects, contributing to the regeneration of historic city centers and the increase in the supply of quality housing.

On the other hand, the growth of the real estate market presents challenges, particularly regarding housing affordability for the local population, which may be affected by rapid property appreciation and pressure from the luxury and tourism segments. Balanced management of these dynamics is essential to ensure sustainable and inclusive development of Portuguese cities.

Real estate transactions in Portugal—especially in the Lisbon-Cascais corridor and Douro regions—reflect a rapidly growing market, driven by foreign investors who account for over 70% of purchases in some areas. This phenomenon has contributed to property appreciation, increased business volume, and the stimulation of the national real estate sector. For those looking to invest or buy a home in Portugal, understanding these trends is crucial for making informed decisions and taking advantage of the opportunities the market offers in 2025.