Summer 2025 has arrived, pushing temperatures to new heights. Living in a house by the sea offers relief from the heat, with the added bonus of enjoying the beach, and possibly a garden and swimming pool. In Portugal, there are more and more luxury villas for sale in municipalities along the Atlantic Ocean, with supply increasing by 10% year-on-year in the second quarter of 2025. But where are these beachfront homes? And how much do they cost? We dove into the data from idealista/data and found the answers.

Those looking for a premium home in one of Portugal's coastal municipalities now have more options than a year ago. Between April and June alone, over 14,000 luxury villas were listed for sale by the sea, representing a 10% increase compared to the same period last year, according to idealista/data.

Supply of Luxury Homes in Coastal Municipalities
Number of Luxury Villas for Sale in Q2 2025
Change Compared to Q2 2024

Cascais: 2,659 (-3%)
Loulé: 1,999 (+17%)
Lagos: 1,023 (+25%)
Sintra: 791 (+8%)
Albufeira: 612 (-5%)
Porto: 583 (+2%)
Funchal: 501 (+85%)
Vila Nova de Gaia: 486 (+39%)
Lisbon: 480 (+19%)
Lagoa (Algarve): 398 (-17%)
Faro: 390 (+18%)
Calheta (Madeira): 358 (+17%)
Oeiras: 336 (-15%)
Almada: 279 (-15%)
Grândola: 242 (-4%)
Tavira: 221 (+43%)
Seixal: 179 (+15%)
Mafra: 163 (-15%)

Sample includes 44 coastal municipalities in mainland Portugal and islands with 30 or more luxury homes priced over €1 million.

Portugal has over 80 coastal municipalities, all of which have at least one luxury home for sale. But only 44 have a significant supply, defined as 30 or more properties on the market, and these form the basis of our analysis. Cascais, Loulé, and Lagos stand out as the municipalities with the most luxury villas listed for over €1 million, each with over 1,000 properties.

The data also reveals that the supply of luxury villas increased in 31 of the 44 municipalities, with the highest year-on-year increases in Santa Cruz (+91%) and Funchal (+85%), both located on Madeira island. On Lisbon's south bank, notable increases were seen in Alcochete (+81%) and Setúbal (+79%). Conversely, Castro Marim in the Algarve saw the steepest decline (-27%).

Demand for Luxury Villas in Coastal Municipalities
Measured by number of contacts per listing
Change Compared to Q2 2024

Demand did not rise in the Algarve, despite the strong supply. The most sought-after areas are Lisbon, Oeiras, Cascais, and Sesimbra. The first Algarve municipality to appear in the ranking is Aljezur (8th), followed by Vila do Bispo (14th). Before that, interest is focused on various municipalities around Greater Lisbon and Greater Porto.

Eighteen municipalities attracted more attention from luxury buyers over the past year. These include Póvoa de Varzim (where demand doubled), Faro (+85%), Aljezur (+83%), and Lagos (+41%). However, demand dropped in 25 coastal municipalities, which may explain the increase in high-end properties on the market. The largest drop was seen in Torres Vedras.

How Much Does It Cost to Buy a Luxury Home Near the Beach?

In Portugal, luxury beachfront villas are available at a range of price points. The highest median price was in Grândola, Setúbal district, at around €2.7 million in Q2 2025, reflecting an 11% annual increase. Castro Marim, in Faro district, had the lowest median price among municipalities with representative supply, at €1.2 million.

Ten coastal municipalities recorded median luxury home prices above €2 million. These include Grândola, Cascais, Lisbon, Loulé, Almada, Oeiras, Lagos, Alcácer do Sal (home to the luxurious Comporta), Sesimbra, and Albufeira, according to idealista/data. In Porto, the average cost of a luxury villa is around €1.7 million.

More than half of the 44 coastal municipalities with a strong supply of luxury homes saw prices rise over the past year. In 10 municipalities, prices increased by at least 10%, including Óbidos (+28%), Sesimbra (+24%), and Póvoa de Varzim (+21%).

Prices remained stable in Lagos and Matosinhos but fell in the remaining 18 municipalities. The steepest decline was recorded in Ribeira Brava (-29%) on Madeira island. Lisbon (-4%) and Faro (-6%) also saw decreases, while in Porto, the median price rose by 8% between Q2 2024 and Q2 2025.

Luxury Beachfront Home Prices (Q2 2025)
Annual Change

Grândola: €2,744,628 (+11%)
Cascais: €2,499,887 (+9%)
Lisbon: €2,346,354 (-4%)
Loulé: €2,222,269 (-2%)
Almada: €2,201,720 (-7%)
Oeiras: €2,061,250 (+9%)
Lagos: €2,056,158 (0%)
Alcácer do Sal: €2,044,949 (+12%)
Sesimbra: €2,035,909 (+24%)
Albufeira: €2,011,275 (+5%)
Sintra: €1,954,159 (+3%)
Ponta do Sol: €1,937,260 (+2%)
Seixal: €1,903,631 (+16%)
Portimão: €1,854,753 (+5%)
Olhão: €1,853,138 (-1%)
Lagoa (Algarve): €1,845,892 (-2%)
Funchal: €1,840,918 (-6%)
Esposende: €1,826,136 (+19%)