Top 5 Coastal Destinations to Buy Luxury Property in Portugal

Portugal is no longer Europe’s best-kept secret. As a global magnet for high-net-worth individuals, the country has become synonymous with luxury property in Portugal, combining fiscal appeal, political stability, and an unbeatable quality of life. For investors and lifestyle buyers searching for exquisite coastal homes in Portugal, the market is red-hot.

In 2025, the luxury market is projected to continue its surge, with property prices in prime areas like the Algarve increasing significantly. Portugal led the EU in property price growth in the first half of 2025, underscoring its appeal. This growth is driven by a desire for security, space, and proximity to the exclusive, yet discreet, lifestyle enjoyed by global A-list figures.

From the manicured greens of the Golden Triangle to the bohemian chic of the Alentejo coast, here are the top five coastal destinations for buying luxury real estate in Portugal today.

The International Buyer Profile & The Golden Visa Impact

The luxury property market in Portugal is increasingly global, with a notable shift in the most active international buyer profiles over the last few years.

Historically, the Golden Visa (Residency by Investment) program established a strong base of investors from non-European Union countries. According to data from the SEF (Serviço de Estrangeiros e Fronteiras), investors from China, Brazil, Turkey, South Africa, and Russia dominated the approved residence permits from 2012 up until 2021, with Chinese investors alone representing nearly half of the total permits granted through real estate acquisition.

However, the luxury and lifestyle buyer profile is becoming more diverse, especially in key coastal markets:

• North American Surge: Recent years have seen a significant increase in buyers from the United States and Canada, attracted by the lifestyle, safety, and cultural factors. In 2023, US citizens became the top foreign buyers in the Lisbon Urban Regeneration Area, representing 15.2% of all non-resident acquisitions and displacing the French from the top spot.

• European Core: Buyers from France, the United Kingdom, and Germany remain consistently strong forces, particularly in established coastal markets like the Algarve. The Algarve was the most popular location to buy property for foreigners in 2023, accounting for nearly 30% of foreign purchases nationwide.
• High-Value Acquisitions: Foreign buyers consistently purchase homes that are significantly more expensive than those acquired by Portuguese residents. In the first quarter of 2024, the average price of homes purchased by non-residents was 39% higher than those bought by domestic residents.

The Golden Visa Effect on Luxury Property

The Golden Visa real estate route was instrumental in channelling approximately €6 billion in foreign capital into the Portuguese property market between 2012 and 2023.