Are you thinking about buying a property in Portugal but you're not sure which location is right for you? Time to pour yourself a crisp Vino Verde and switch on some Carlos do Carmo.* Kyero's data and research wizards have crunched the numbers to bring you our 10 top destinations in Portugal for property investment in 2024
From the coastal charms of Comporta to the cosmopolitan vibes of Lisbon or the affordability and beauty of the Azores, each location presents an attractive opportunity for prospective investors. Here are the best places to buy property in Portugal in 2024.
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Firstly, why buy property in Portugal?
Beyond the obvious motivation behind buying a property in Portugal; the architecture, history, scenery, beaches, fado, and those gorgeous azulejo tiles, there are plenty of practical reasons too. Portugal is home to a thriving expat community, with more than 700,000 foreign residents, including nearly 47,000 from the UK. Condé Nast Travel Magazine's Readers' Choice Awards ranked Portugal as the seventh-best country to visit globally in 2023 and in the same year it was once again voted one of the safest countries to live in the world.
The country's tourism industry reached historic highs in August 2023, with over 3.5 million recorded overnight guests and €878.3million in total tourism revenue. With a robust property market experiencing 5.4% growth in construction and an 8% surge in average property prices in 2023, Portugal is an attractive destination for investors seeking prosperity and a slice of the country's enduring charm. Check out our 5 great reasons to buy a property in Portugal if you need more inspiration.
Funchal, the vibrant capital of Madeira, was Kyero’s most popular location in Portugal in 2023 for property investors. With its exquisite fusion of fine dining, five-star hotels, and a charming marina and old town, Funchal is a popular, year round destination, with a sub-tropical climate, meaning long hot summers and mild winters. Prices are on the high side compared to the rest of the islands, but there are still bargains to be found. With a sizeable expat population, plenty of opportunities for hiking, golf, yoga, surfing, and yachting, good healthcare services and two international schools, Funchal is the ideal choice for a variety of investors and expatriates.
Why buy a property in Funchal? It’s one of the most popular locations in Portugal for international property buyers, making it a sensible investment, with plenty of things to see and do, including botanical gardens, cable car rides, galleries, whale-watching, sailing and lively arts, crafts and food markets.
Albufeira was the second most popular destination for property purchases in Portugal in 2023 according to Kyero's data experts. Albufeira offers a mix of stunning Blue Flag beaches, castles, caves and water parks to explore, plus vibrant nightlife, an active tourist industry and a large expat population. With a vibrant events programme including the popular Festa Al Buhera seafood festival, there is always something to see and do in this beloved Algarve resort. For more Algarve destination inspiration, check out our guide to where to buy property on the Algarve.
Why buy property in Albufeira? The real estate market in Albufeira has shown stability and growth over the years. Investing in property here may offer potential appreciation and can serve as a valuable asset in a well-established and desirable location.
Óbidos is an impossibly pretty medieval gem of a town in the heart of the Leiria district, close to the glittering Silver Coast, known for its cobblestone streets, majestic castle and the local's favourite tipple; Ginja, a moreish cherry liqueur with a distinct regional charm. Buy a property here and your leisure time could consist of tee-ing off at picturesque golf courses, exploring historic castles, going for long beach walks or tickling your taste buds at local markets and food events such as the annual chocolate and pastry festival – a true delight. Beyond its tourist allure, Óbidos is clearly registering with property investors, entering Kyero's coveted top 10 most searched locations in 2023, signalling a surge in global interest. With a central location facilitating easy exploration of the rest of Portugal (and Spain), it’s a great base for a holiday home or a permanent move.
Why buy a property in Óbidos? Aside from the charm of the old town and proximity to breathtaking beaches, exciting prospects lie ahead for Óbidos; with plans for a surf village featuring a wave pool and holiday resort in the town, set to complete construction by March 2026.
Featured prominently in Conde Nast Traveller's trendiest destinations in recent years, Comporta embodies the Bohemian beachside lifestyle, and has recently seen a surge in luxury property developments, including the eagerly awaited Atlantic Club Comporta. In this coastal haven, seaside shacks tantalise taste buds with delectable seafood delights, seamlessly weaving eco-friendly practices into the tapestry of everyday life. Wander through upscale food halls where the bounty of Alentejo's lush region graces the shelves, and discover boutique wineries scattered across the picturesque landscapes just beyond the sun-kissed shores—all within an hour's journey from the vibrant heart of Lisbon.
Why buy a property in Comporta? It’s an idyllic location for those seeking a blend of sophistication, natural beauty and wonderful food, with a thriving surf scene, just one hour from Lisbon.
Nestled in the embrace of the Sintra Mountains, a mere whisper away from Lisbon, lies the enchanting town of Sintra, an artist's canvas and UNESCO World Heritage site. With romantic architecture and verdant landscapes that have seduced the likes of Lord Byron and Hans Christian Andersen, Sintra is a living masterpiece. Its crown jewel, the colourful Pena Palace, stands as a vivid fairytale fortress overlooking the town. Meander through the historic town centre, a labyrinth of familial charm dotted with artisanal eateries, art havens, and bespoke boutiques. Venture into the surrounding countryside, a realm of bewitching forests and hiking trails within a national park. Sintra has even captivated the Queen of Pop herself, Madonna, who bought a Moorish revival haven in the historic nearby Quinta do Relogio estate in 2017.
Why buy a property in Sintra? Sintra was the third most coveted locale for homebuyers in the Lisbon region in 2023, as per Kyero data. It’s also a haven for families seeking a home in Portugal, due to its proximity to esteemed International Schools like Park International School and St John’s. Not to mention, it is just a skip away from Lisbon airport and international connections.
Horta is a town located on the eastern coast of the island of Faial in the Azores archipelago. The town and surrounding area boast spectacular scenery, whale-watching, island-hopping fun, a fascinating historic centre and lively marina. Here property bargains await savvy investors. The Azores enjoy mild temperatures throughout the year, with relatively small variations between seasons. Winters are mild, and summers are pleasantly warm. The pace of life is geared toward those who appreciate a quieter and more nature-centric lifestyle. For those seeking a unique blend of maritime heritage, community spirit, cheap property and natural beauty, Horta can be a truly enchanting place to call home.
Why buy a property in Horta? It’s super affordable. You can find many bargain properties in Horta, with attractive three bedroom townhouses starting at as little as €115,000.
Inland Alentejo is Portugal’s Andalucia, all tumbledown-walled-villages, ruined castles, flower meadows, ripe goat’s cheese, red wine and olives. Evora calls itself a city, but it’s really a large town, big enough to get lost in, but not for long. In its historic heart, a UNESCO World Heritage site, you’ll find a crumbling Roman castle, historic churches and a fabulous museum. Despite being home to just 6% of the population, the Alentejo region feeds the entire country by producing olive oils, nuts, ham, cheeses, honey, wine, shellfish, game, veg and rice. As a result, the local markets, restaurants and wineries dotted around the Evora countryside are an absolute joy to spend your days exploring. Overnight tourist stays in the Alentejo region increased by 15.3% in 2023, according to the Portuguese National Institute of Statistics, evidence of the area’s increasing popularity.
Why buy a property in Evora? Located smack bang in the middle of Portugal’s ‘’breadbasket,’ the whole region is a foodie’s dream. Add historic charm and proximity to Lisbon airport and you have a fabulous location for a holiday home, or permanent relocation to Portugal.
Nestled on the tropical haven of Madeira, Machico has emerged as a rising star in Kyero's top location rankings, experiencing a notable surge in searches in 2023. This momentum mirrors Madeira's overall allure, witnessing an impressive 82% spike in interest from Kyero users, solidifying its status as one of Portugal's most captivating destinations. Beyond its property appeal, Machico captivates with breathtaking landscapes, renowned fortified wines, and an intricate network of green levadas, offering enchanting hiking trails. Surprising yet delightful, Machico doubles as a burgeoning business hub, equipped with amenities catering to digital nomads, including co-working spaces and engaging meet-up events.
Why buy a property in Machico? Its historical significance, beautiful beach, laidback lifestyle and natural beauty make Machico a charming destination for property investment. And it’s turning into a bit of a digital nomad hotspot too.
Vale do Lobo, often dubbed the "Beverly Hills" of the Algarve, is a prestigious resort and residential development located in between Faro and Vilamoura. Established in 1962, it is one of the largest luxury resorts in the country, renowned for its upscale amenities and stunning coastal setting. With five golf courses, luxury spas, a tennis academy, and excellent healthcare facilities, it offers an exclusive lifestyle, and its located on the doorstep of some of Portugal’s most spectacular national parks
Why buy a property in Vale do Lobo? Luxury living in the sunny Algarve, what more could you want? Vale do Lobo is a short hop to Faro International Airport and it’s close to reputable international schools, making it an attractive destination for families.
The capital city of Portugal has edge, charisma, good looks and pure Atlantic light in spades. Here miradouros (viewpoints) perch like bird’s nests on its seven hills, and vintage trams pass by azulejo-tiled houses. Once derelict warehouses have been transformed into trendy office spaces, restaurants, bars and nightclubs. Other highlights include superb beaches, great food (the Time Out food market is a highlight), atmospheric fado clubs, a thriving art scene, and excellent museums. The Alfama, Baixa, and Chiado neighbourhoods are particular hotspots for investment.In fact, Lisbon was the eighth most attractive European city to invest in property in 2023, according to the annual "Emerging Real Estate Trends in Europe" report by UK-based PwC and the Urban Land Institute (ULI).
Why buy a property in Lisbon? It’s got a thriving startup scene and a diverse population, over half fluent in English, easing the transition for newcomers. Its international airport ensures seamless global connectivity and renowned international schools provide excellent education options. Add the charm of the architecture, the fado and the cuisine (hello pastel de nata!) and you’ll see why this city is so irresistible to a wide range of expats.
*If you read all the way to the end of this article and you're still curious who Carlos do Carmo is, well, he was the Frank Sinatra of Fado. Expect to hear a lot of him when you're living your best life in sun-kissed Portugal. As the old Portuguese saying goes - “quem não arrisca não petisca,” - which literally translates to “those who do not risk, do not have a snack.” In other words, nothing ventured, nothing gained.
