Portugal Property Market 2026: What Has Changed for Overseas Buyers and Where Demand Is Strongest

The End of the Golden Visa Property Route

One of the biggest structural changes in Portugal is that real estate investment is no longer a qualifying route for the Golden Visa programme. This has adjusted the buyer mix, reducing purely visa led purchases and leaving a more lifestyle and fundamentals driven market in many regions.
Portugal’s Golden Visa still exists through other routes, but property acquisition is no longer the driver it once was.

Why International Buyers Still Choose Portugal

Despite that change, overseas demand remains strong because Portugal continues to offer:

• Established second home and relocation appeal
• High quality coastal living and accessible infrastructure
• Strong year round city markets alongside lifestyle regions
• Long term stability as a European destination for international purchasers

Portugal is no longer a market defined by one programme. It is defined by where people genuinely want to live, return to, or hold long term.

Regional Markets That Matter Most

Portugal is not one story. Buyer demand behaves very differently depending on location.

Lisbon and Greater Lisbon

Lisbon remains a premium market with deep local demand, limited central supply and strong international interest. Pricing and rental fundamentals here operate differently from tourism led coastal towns.

Porto and Northern Portugal

Porto is increasingly viewed as a long term livability city rather than a short stay market. Demand is supported by domestic economic activity as well as growing international attention.

The Algarve

The Algarve continues to attract second home buyers, particularly from the UK and Northern Europe. It remains one of Portugal’s most established lifestyle property regions, with strong seasonal rental interest but clear pricing stratification between prime and secondary towns.

Madeira

Madeira has become a more visible lifestyle destination for overseas buyers seeking year round climate, island living and long stay use rather than short holiday cycles.