Hospitality is the core value of Portugal tourism that attracts millions of foreign tourists every year. In recent times, the appeal of luxury real estate Portugal has grown as the country’s unique and historical architecture, blended with the modern-day aesthetics turns Portugal into a European tourist gem. This is evident as the hospitality investment is growing, specifically in exotic hotel properties with a €331 million investment in the first half of 2025, which is 33% higher than in H1 of 2024.
Luxury Real Estate Portugal Report by CBRE Research
As per the 2025 Real Estate Market Outlook report by the CBRE Research Portugal, the investment projection for the Portuguese retail sector will be 30%. Investment in hotels is ranked 2nd with a 29% share of total investments in Portugal for 2025. This is a strategic shift as investors are focusing on hospitality-focused luxury real estate projects, especially after the government ended real estate investment for Portugal Golden Visa investors.
Luxury Real Estate Portugal and Golden Visa
After the end of real estate investment for Golden Visa Investors, venture capital funds emerge as the top priority for investors. Venture Capital Funds focus on different segments, including Retail, Education, Renewable Energy, Information Technology, Agriculture and many others. Hospitality accommodations become a top choice for investors due to high earning potentials, capital gains with added benefit of European residency.
"The appetite for hotel investment in Portugal remains stable, given the investment volumes recorded," said Gonçalo Garcia, head of hospitality at Cushman & Wakefield.
International Investors Lead the Charge in Portugal
Portugal has attracted foreign direct investment by offering a vibrant lifestyle and peaceful living. The CBRE’s annual investor survey reveals that 71% of investment in hotels for the first half was by foreign investors. Portugal is the top preference for luxury real estate investments.
As per José Maria Coutinho, Head of Research at CBRE, the total investment is likely to surpass €600 million by the end of 2025. He highlighted the growth of tourism in Portugal and its stable political and economic stability.
Sector Wise Share Projection by Savills
As per Savills, the 2024 investment portion of hotel real estate is 20% for the entire Portugal real estate sector. The report highlights that investment in hotels was €486 out of €2.4 billion for overall real estate investment. The projection marks further growth with a 16% year-on-year investment rise for Q1 of 2025.
Earnings from Tourism in Portugal on the Rise
As per the INE, hotels in Portugal hosted 3.2 million guests, which shows a 2.6% rise for May 2025 and 7.8 million overnight stays with a 1.3% rise for the same month of the previous year. The revenue from hotel accommodations was €550.6 million, showing a rise of 8.9%.
Rise in Issuance of New Building Permits
The Government of Portugal issued 7100 new building permits for construction during the 1st quarter of 2025. This shows a massive 20.3% rise when compared to the same quarter previous year. Portugal real estate is booming, and investors from the US, UK, Brazil and are China making huge investments.
The construction permits for new buildings show a growth of 24.1% for Q4 of 2024 when compared with Q4 of 2023. Moreover, the 2025 Q1 shows issuance of 7.1 new permits for the construction of buildings, showcasing a sharp rise of 20.3% when compared with Q1 of 2024. Renovation permits were also on the rise, with 23.7%. Overall, a total of 3.9 thousand buildings were completed in 2025 Q1, showing a 1.1% rise.
Growth of Real Estate Wealth of Portuguese Families
Portugal Real Estate Investment is a lucrative option, which is evident from the statistics of the past decade. The historical data from the Instituto Nacional de Estatística shows a record 72% appreciation from 2014 to 2024. Portugal emerges as a prime place for investment, especially the real estate.
Portugal Real Estate’s Appeal Among Royal Families
High-net-worth citizens from the US and the UK are buying properties to access luxury living at an affordable cost. Prince Harry and his wife, Meghan Markle, along with his cousin Princess Eugenie and her Husband Jack Brooksbank also owns luxurious properties in Melides, south of Lisbon. These investments are mainly in luxury holiday homes, allowing affluent people to spend quality time in Western European countries.
Portugal Residency via Investment in Venture Capital Fund
Since the ban of real estate investment for Golden Visa of Portugal, venture capital funds are important investment option. These Golden Visa Funds invest in various sectors including renewable energy, hospitality, IT infrastructure, agriculture, education and pharma that boost the local economy, while investors get Portugal residency, ROI and a chance to claim Portuguese citizenship on meeting the criteria. These funds are approved by government and regulated by CMVM upon meeting the strict criteria.