Where are the luxury homes in Portugal, Spain, and Italy

The luxury residential market continues to thrive in Portugal, Spain, and Italy, although some differences in housing price trends have been noticeable over the past year. Lisbon, Madrid, and Milan stand out as the main urban areas with luxury homes for sale, showing the highest prices. But they are not the only premium housing hubs in these three countries.

To understand how the luxury market is moving, we analyzed the areas of several municipalities in Southern Europe with the highest home sale prices, based on August 2025 data released by idealista’s price indexes, the leading real estate marketplace in Southern Europe.

Lisbon monopolizes the luxury residential market in Portugal

In Portugal, Lisbon leads and dominates the luxury housing market. All 14 Lisbon parishes show median home prices above €5,000 per square meter (€/m2). The parish of Santo António has the most expensive square meter (m2) in both the capital and the country (€7,376), followed by Estrela (€7,010) and Misericórdia (€6,890).

The other 11 Lisbon parishes also rank among the most expensive in the country, such as Avenidas Novas (€6,781/m2), Belém (€6,670/m2), Campo de Ourique (€6,281/m2), and Santa Maria Maior (€6,261/m2).

Outside Lisbon, the parish of Cascais and Estoril stands out, with home prices reaching a new historic high of €6,585/m2, after increasing 6.7% in the last year. Also on this list is the neighboring parish of Carcavelos and Parede (€5,055/m2).

Luxury homes in Portugal

In the south of the country, the parish of Almancil, in the municipality of Loulé, appears among the most expensive, with homes for sale reaching €6,189/m2. It also stands out for recording the highest increase in housing costs (+23.5%) among the most expensive Portuguese parishes analyzed. In terms of price growth, Almancil outpaced Lisbon’s parishes of Alcântara (6.7%), Belém (6.6%), or São Domingos de Benfica (5.9%).

Even so, eight of Portugal’s most exclusive parishes recorded declines in home prices. The largest drop occurred in Campolide (-7.1%), in Lisbon, followed by Carvalhal, in Grândola (-6%). Other notable decreases were seen in Lisbon areas such as Areeiro (-5.7%), Alvalade (-5.5%), and Santo António (-3.8%). In Estrela, Avenidas Novas, and Santa Maria Maior, prices fell 0.5%, while in Campo de Ourique they remained stable over the past year.

Portugal | Parishes with luxury housing
Portuguese parishes above €5,000/m2 in August 2025 and annual variation

Source: idealista Portugal

Balearic Islands and Madrid: epicenters of luxury in Spain

Several Spanish “districts” (administrative units equivalent to Portuguese parishes) have median home prices higher than Santo António, the Lisbon parish that recorded the national maximum (€7,376/m2).

The Salamanca district in Madrid stands out, recording the highest home sale price per square meter in Spain: €9,868/m2 in August, after an annual growth of 22.5%. Salamanca also has the country’s most expensive residential neighborhoods, with prices exceeding €10,000/m2 in Goya, Lista, Castellana, and Recoletos.

Also with median housing costs above €9,000/m2 are Spanish districts such as Sant Josep (in Ibiza) and Costa d’En Blanes (in Mallorca). Prices hit historic highs in idealista’s series in these two locations, at €9,377/m2 and €9,227/m2, respectively.

In Calvià, Mallorca, 11 out of its 13 districts show home sale prices above €6,000/m2, with highlights including Portals Nous – Bendinat (€8,379/m2), Cas Catala – Illetes (€8,226/m2), and El Toro (€7,876/m2).

Madrid also stands out with six locations in this ranking of Spain’s highest luxury housing prices. In addition to Salamanca, home prices per m2 exceed €7,000 in Chamberí, Retiro, Chamartín, and Centro.

The largest annual price increases were recorded in Sant Elm - S’Arracó (+45.2%), in Andratx, and El Toro (+33.9%), in Calvià (both in Mallorca). In Madrid’s Retiro district, house prices became 31.7% more expensive in August 2025 compared to the same period a year earlier.

Meanwhile, 24 other Spanish districts recorded housing cost increases above 10%. On the other hand, only three posted annual declines below 5%: Sant Jordi de Ses Salines (Ibiza), San Carlos in Santa Eulalia del Río (Ibiza), and Portals Nous - Bendinat in Calvià (Mallorca).

Spain | Residential luxury districts
Districts in Spanish municipalities above €6,000/m2 in August 2025 and annual variation

Source: idealista Spain

Milan dominates Italy’s top luxury areas

In Italy, Milan dominates the luxury residential segment. The city’s historic center has the most expensive square meter among the three countries, reaching €10,776 in August, according to idealista data.

Next are two “distretti” (administrative units equivalent to Portuguese parishes) in the famous coastal municipality of Forte dei Marmi, Tuscany’s jewel. In the town center, home prices reached €10,178/m2 in August, while in nearby Vittoria Apuana the market recorded a median of €8,987/m2.

Rome’s historic center is also among the most exclusive districts for buying a home, with prices around €7,500/m2, as well as other Milan areas such as Garibaldi-Porta Venezia (€7,333/m2), Fiera-De Angeli (€7,197/m2), and Navigli-Bocconi (€6,938/m2).

The largest increases in home prices in Italy were recorded in Rocchette-Roccamare-Riva del Sole (+17.8%), along with the Prati district in Rome (+10.5%) and Marina di Pietrasanta (+10.1%). All other Italian districts saw increases below 10%. Only Centro-Abissina, in Riccione, recorded a drop in luxury home prices in August (-3.7%).

Italy | Luxury real estate districts
Districts in Italian municipalities above €5,000/m2 in August 2025 and annual variation

Source: idealista Italy