Portuguese and foreign buyers continue to eye Portugal’s luxury residential real estate market

Portuguese and foreign buyers continue to keep an eye on Portugal’s luxury residential real estate market — a segment that has managed to outsmart both the pandemic and an adverse economic context (including high inflation and elevated interest rates), remaining attractive and firmly on investors’ radar. But what, after all, adds or removes value from luxury properties? And are there details that weren’t so appreciated before but have now become important?
Location is the keyword, specialists highlight. However, sustainability, open views — especially sea views —, the exclusivity and scarcity of the asset, security, and amenities such as a private pool, gym, and spa have increasingly become essential features.

The vision of real estate agencies

Location and quality of materials make the difference
“Convenience and quality of life in the same asset”
What developers say
The importance of architecture in the premium segment
What elevates the perception of quality and refinement in a home?

The vision of real estate agencies

“The value of a luxury property is based on a balance between tangible and intangible factors. When it comes to tangible factors, location remains central,” begins Miguel Poisson, CEO of Portugal Sotheby’s International Realty, in a statement to idealista/news. He assures that in consolidated areas such as Lisbon, Cascais, Estoril, and Porto — or in regions with strong international appeal such as the Algarve, Madeira, and the Comporta–Melides corridor — luxury properties tend to appreciate more consistently.
“In these areas, luxury is not limited to the postcode but also to the ability to offer unobstructed views, privacy, and quality of life, always with easy access to services, culture, and mobility,” he explains.

Miguel Poisson also highlights the importance of exclusivity, considering it a decisive factor in the premium segment: “Unique properties, with architectural or branded signatures (‘branded residences’), are differentiating features that, when combined with strong integration with nature, tend to achieve greater liquidity and long-term appreciation.”

In summary, he says that what gives value to a luxury property is the combination of a privileged location, exclusivity, and scarcity of the asset, as well as its ability to provide both economic and emotional returns.
“These are homes that go beyond being assets: they become places for gathering, celebration, and rest,” he emphasizes.

“The value of a luxury property is based on a balance between tangible and intangible factors. When it comes to tangible factors, location remains central.”
— Miguel Poisson, CEO of Portugal Sotheby’s International Realty

Daniela Rebouta, Sales Director at Engel & Völkers (E&V) Lisbon, Oeiras and Setúbal, maintains that factors such as location, proximity to the sea or river, open views, proximity to green areas and services, good access, quality finishes, high-quality materials, energy rating, and a focus on sustainable solutions add value to luxury properties.

“Sustainability, energy certifications, efficiency, integration of technology, adaptation to new lifestyles, personalized services and experiences, outdoor spaces, and the inclusion of integrated wellness areas are factors that have gained prominence in property demand in recent years,” she stresses.

Location and quality of materials make the difference

On behalf of Porta da Frente Christie’s, CEO João Cília notes that, besides location, the level of construction and finishing is also a decisive factor:
“The use of premium materials and finishes is fundamental in a luxury property and has a huge impact not only visually but also in terms of comfort.”

Among the features that make these properties unique and desirable, he points out the following:

  • Unobstructed view, especially of the sea or river, is one of the most valued features and can increase a property’s value by up to 30% compared to similar ones without a view;

  • Private outdoor space, whether garden or terrace;

  • Amenities such as private pool, gym, spa, padel court, etc.;

  • Services such as concierge, 24-hour security, cleaning, and more.

Asked about what adds or detracts value from luxury homes — and about the details that are now more appreciated by investors and/or buyers — Jorge Costa, COO of Quintela + Penalva | Knight Frank, also emphasizes location:
“Be it proximity to the sea, location in prestigious neighbourhoods, unique river or sea views, or easy access to premium services such as top restaurants, golf, marinas, or international schools.”

He identifies four other pillars as central:

  • Exclusivity and privacy: low-density gated communities, villas on large plots with distance between neighbours, or — in the case of apartments — solutions that ensure discretion and tranquillity, such as private access to the beach, marina, or golf course;

  • Quality of construction and design, marked by signature architecture, luxury finishes, noble materials, and landscape integration, inevitably accompanied by energy efficiency and sustainability criteria;

  • Infrastructure and services, such as pool, spa, gym, 24-hour security, concierge, or cutting-edge technology like smart home systems and EV chargers;

  • Scarcity and prestige of the area, which act as value multipliers, especially in markets with limited supply and high international demand, such as historic Lisbon, riverside Porto, or Comporta.

“Convenience and quality of life in the same asset”

However, Jorge Costa warns that new factors have recently become decisive in the premium segment, stressing that “sustainability is no longer an ‘extra’ but an expected standard, with energy efficiency and ESG (Environmental, Social and Governance) criteria gaining prominence.”

“Buyers and investors in Portugal’s luxury real estate now look for a very specific set of attributes, seeking convenience and quality of life in the same asset.”
— Jorge Costa, COO of Quintela + Penalva | Knight Frank

He adds that “technology and wellness experiences are increasingly central — from intelligent systems managing climate and security to spaces dedicated to leisure, health, and relaxation,” reinforcing that “luxury real estate buyers and investors in Portugal today prioritise very concrete attributes,” valuing “convenience and quality of life in the same asset.”

What developers say

idealista/news also sought to hear from real estate developers, who are, after all, the ones developing residential projects on the ground.

“Luxury real estate, contrary to what some may think, is not defined by price but by the combination of a series of differentiating factors that, together, make a property unique,” says Miguel Cabrita Matias, Member of the Board at Mexto Property Investments.

“In the past, for a real estate asset to be considered luxury, price and ostentation were sufficient factors. Today, discreet sophistication, cutting-edge technology, and energy sustainability are valued alongside security, exclusivity, comfort, design, detail, and art as a unique creative element.”
— Miguel Cabrita Matias, Mexto Property Investments

“As main factors, one can point to location, architecture and design, materials and finishes, and exclusivity, but also silence, privacy, discretion, integration with nature and surroundings — inside or outside the city — providing a differentiated living experience,” he comments.

He also warns that the landscape is changing: “Where once price and ostentation sufficed, today what’s appreciated is discreet sophistication, advanced technology, and energy sustainability, along with safety, exclusivity, comfort, design, attention to detail, and art as a one-of-a-kind creative piece.”

In this sense, Miguel Cabrita Matias reinforces that investors and buyers seek exclusive and timeless assets, signature architecture, unique properties with artistic integration, historical legacy and cultural value, combined with unique lifestyle services, total comfort, cutting-edge technology, and sustainability.

The importance of architecture in the premium segment

Architecture also plays a key role in the design and construction — or renovation — of luxury properties and developments, as well as in clients’ choices when selecting a home.

“A project’s architecture and design have a direct and significant impact on a property’s value, both financially and symbolically. A project with a unique design can make a property truly exclusive. Architecture and design not only shape the living experience but also position the property within the luxury market. A well-designed project enhances a property as a unique product, while a poorly executed or generic one can limit its potential or even devalue it,” explains Mariana Morgado Pedroso, CEO of Architect Your Home (AYH), to idealista/news.

“Luxury in architecture and interior design goes far beyond the value of materials used. True luxury lies in the careful selection of details, the harmony between aesthetics and functionality, and the feeling of comfort and sophistication that spaces convey.”
— Mariana Morgado Pedroso, CEO of Architect Your Home

For this reason, she has no doubt that architects play a decisive role:
“The functionality and flow that an architect can bring to a home — through a well-thought-out layout, integrated environments, spacious living areas, and good circulation — increase comfort and value. Examples include custom-designed gourmet areas, home offices, spas, wine cellars, and private cinemas, which are highly valued. The choice of exclusive, luxurious, yet locally appropriate materials is a major advantage of having a good architect/designer working on a luxury project.”

What elevates the perception of quality and refinement in a home?

In this regard, Mariana Morgado Pedroso highlights several specific elements that immediately elevate the perception of quality and refinement in a home:

  • Flooring – The use of solid wood is a timeless classic. It brings warmth, natural beauty, and unmatched durability. The texture, sound underfoot, and graceful ageing of wood enhance the elegance of any space, especially when combined with contemporary finishes;

  • Special-finish taps and fixtures – Metal pieces in bronze, brushed copper, matte gold, or matte black are sophisticated choices for kitchens and bathrooms. Brands offering designer taps with premium finishes add authenticity and exclusivity to the space;

  • Continuous cladding with minimal joints – Surfaces covered with large slabs, whether natural stone or porcelain, create a sense of spaciousness and flow. The fewer visible joints, the cleaner and more luxurious the look;

  • Carpentry with noble woods and detailing – Doors, skirting boards, built-in wardrobes, and fixed furniture made from solid or fine-veneered wood reveal commitment to quality and taste. Details like handcrafted mouldings, perfect fittings, and manual finishes elevate the project’s standard, creating visual and tactile continuity between spaces;

  • Purpose-designed lighting – Lighting has the power to completely transform a home’s atmosphere. A lighting project signed by a ‘light designer’ enhances volumes, textures, and colours, creating personalised ambiences for different times of day;

  • Wallpaper in selected areas – The intelligent use of wallpaper, especially in entry halls, headboards, or powder rooms, adds personality and sophistication. Refined textures, subtle patterns, or high-end materials like silk, linen, or premium vinyl finishes create focal points without overwhelming the space;

  • Luxury bathroom fixtures – Sanitary ware and taps from prestigious brands combine functionality with excellent design. Minimalist lines, premium finishes, and embedded technologies (such as smart toilets or sensor taps) elevate comfort and aesthetics.

“Luxury in architecture and interior design goes far beyond the value of materials used. It lies in the careful choice of details, the harmony between aesthetics and functionality, and the sense of comfort and sophistication that spaces convey,” she concludes.