The global luxury real estate sector is set to transform in 2025, and Portugal is no exception. According to the latest report by Portugal Sotheby’s International Realty, women and Millennial buyers are becoming key players in the sector.
The ‘Luxury Outlook 2025’ highlights that international and national investors continue to drive growth, with a 20% increase in transactions in 2024 and an average sale price of €1,030,269.
Influenced by factors such as increased wealth mobility, intergenerational asset transfers, and the impact of "Best Cities to Live" rankings on property prices, real estate demand in Portugal remains strong, particularly in premium locations like Lisbon, Porto, the Algarve, Madeira and the Melides/Comporta/Tróia region.
However, a key trend shaping the market is the significant transfer of wealth from older generations to younger buyers. By 2045, an estimated €80 billion will pass from the Silent Generation and Baby Boomers to their heirs, reshaping investment preferences.
Millennials in particular are becoming a dominant force in luxury real estate, seeking properties that align with their lifestyle aspirations.
Women are also gaining prominence in the sector. Projections indicate that by 2030, women will control approximately €33 billion in assets, representing around 38% of all U.S. investments.
This shift is expected to influence purchasing decisions, with a growing emphasis on exclusivity, sustainability and high-end amenities.
Additionally, high-net-worth individuals (HNWI) are becoming more mobile, with 128,000 millionaires relocating globally in 2024. Portugal remains a prime destination, attracting 800 new wealthy residents last year alone.
The rise of branded residences, offering personalised services and exclusive experiences, further highlights the evolving preferences of luxury buyers. With the luxury real estate landscape shifting, having a knowledgeable local estate agent by your side is essential.
Whether you're looking to invest in a high-end property in the Algarve or sell your home, Algarve Home Sales can offer tailored insights, access to exclusive property listings and expert guidance to help you make the best decisions in this competitive mhttps://www.algarvehomesales.com/contact-usarket. Get in touch!
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