In the rankings the Algarve appears in seventh place and Porto appears in tenth place, ahead of the Hamptons, Zurich and Cannes. In the same ranking, Lisbon is in 40th position (it maintains the same position), on a par with Florence, Madrid and Val dʼIsère, in France.

The data is contained in the Prime International Residential Index, extracted from The Wealth Report, which tracks the performance of luxury properties in 100 key locations (including cities, sun and ski destinations). The Algarve was in the top 5 of the most popular sunshine destinations, with Dubai being ranked in first position followed by Miami, then the Algarve, the Bahamas and Athens.

The Wealth Report, an annual study designed by Knight Frank, brings together the most important trends and perspectives of the world real estate market. This initiative was promoted by Quintela + Penalva | Knight Frank, who since 2021 has been associated with London-based real estate, a leader in its sector. The report was presented by Alex Koch de Gooreynd, who has been working with Knight Frank since 2005, and is currently responsible for the Portuguese, Austrian and Swiss networks.

Growing market

Despite a context of inflation and war on the European continent, the luxury real estate market grew in Lisbon, a city that recorded a 6% increase in the price of luxury real estate. In Porto, the increase was greater, 12.7%, with the tendency to be even higher in the Algarve (15.5%) – an example of this are the luxury properties available in Quinta do Lago, with a base price at €3.5 million.

According to The Wealth Report, in the 25 cities monitored for this purpose, it is expected that, on average, luxury property prices will increase by 2% in 2023, with Dubai leading this forecast (13.5%). In this sense, the Lisbon market (4%) registers continuous growth in terms of the luxury segment, being preceded only by Dubai and Miami – the Portuguese capital is on a par with cities such as Dublin, Madrid and Paris, and comes ahead of Monaco (3%) and New York (2%).

Top for US investors

Still looking at buying patterns, Portugal is the number 1 European destination for North American investors, who, for the first time, are in the top 5 of investors in Portugal.

Alex Koch de Gooreynd said that “since Knight Frank started working in the Portuguese market, more than two decades ago, we have seen an increase in demand for residential products. Portugal has gone from being a mere place of residence on vacation to one of the most popular location destinations for families looking for a change of lifestyle”.