In 2023, the Portuguese residential tourism market went through a phase of adjustment and stabilization after periods of sharp growth. This market, characterized by an increase in resort housing prices, indicates a positive outlook for investors and buyers. The residential tourism market in Portugal experienced a 9.8% increase in resort housing prices throughout 2023, following growths of 20.6% in 2022 and 16% in 2021. This stabilization reflects continued investor confidence and interest. The high-end segment in resorts has reached significant prices, setting new milestones in the Portuguese real estate market. Despite global challenges such as inflation and political uncertainties, the sector has demonstrated remarkable resilience, attracting foreign investment. Portugal's ability to attract a variety of international investors, including a growing number of U.S. buyers, highlights the country's attractiveness for residential tourism.

Projections for 2024 remain optimistic, with expectations of continued positive development. Interest from national and international investors remains high, especially in key regions such as the Algarve and Alentejo. These areas continue to capture attention due to their exclusivity and luxury offerings. The market is showing development in line with optimistic projections, and continued appreciation of properties in key areas is anticipated. The regions of Algarve, Litoral Alentejo, Lisbon, and Porto are particularly attractive for new residential tourism projects due to the increasing focus on sustainability and innovation. The residential tourism market in Portugal has witnessed a substantial increase in the construction of new units, focused on sustainability and innovation. These new projects are not mere residences but true luxury retreats and elite tourist facilities designed to meet the expectations of a demanding and cosmopolitan public. Investors and developers are increasingly paying attention to the quality and sustainability of buildings, seeking to integrate the best environmental and design practices. This growing trend of valuing residential tourism as a critical component for local and regional economic development is remarkable.

In addition to traditional European and Brazilian investors, there is significant growth in interest from North American investors, motivated by the favorable climatic conditions and the quality of life that Portugal offers. The growth of U.S. investment is changing the landscape of the residential tourism market in Portugal. All regions of Portugal have strong potential for the development of residential tourism. Emerging areas such as the North of Portugal, especially the Douro region, are gaining recognition not only for wine and natural beauty but also as ideal locations to develop luxury tourist residences. The island regions of Madeira and the Azores also offer unique potential. The Greater Lisbon area, including Costa de Caparica and Sintra, is highly attractive due to the combination of access to urban services and cultural attractions with the tranquility of the peripheries. Ribatejo, with its agricultural and equestrian traditions, offers fertile ground for the development of residential tourism focused on rural experiences.

In summary, Portugal is well-positioned as a top-tier destination for residential tourism. The combination of natural beauty, favorable climate, investment incentive policies, modern infrastructure, and a commitment to sustainability and innovation creates an ideal environment for the continued growth of this sector. The residential tourism market in Portugal is expected to continue to thrive in the coming years, attracting more and more investors and residents from all over the world.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes