Portuguese luxury real estate: a safe haven for investors

Contrary to expectations, the geopolitical and macroeconomic environment is having a positive impact on the luxury real estate market in Portugal. Many families see investing in such properties as a way to protect their income and savings from inflation, seeing residential real estate as a "lifeline" in the event of a possible crisis. This is according to Adriano Nogueira Pinto, coordinator of DS PRIVATE, who gives a positive overview of the industry. The market, he says, is "strong and healthy" and is seen as a "safe harbor", especially for foreigners who are actively investing in this segment. He is confident that demand for luxury real estate in the country "will continue to grow in the near future." Americans are here to stay - they are the most interested foreign investors in Portugal. They want to buy houses in luxury neighborhoods and use them as permanent homes for themselves and their families. The British, Germans and French are also actively investing. The Portuguese are also active, although the biggest "boom" occurred during the pandemic.

As expected, location and environment are still the main advantages of luxury real estate.

And, of course, the floor area, which should be "generous". Technology and smart home also play an important role, as well as security and energy efficiency. Urban centers such as Lisbon and Porto remain very attractive markets, but there is a "growing trend of shifting demand to less urban areas where homes can have other sizes and pleasant outdoor spaces where leisure and work can be combined for different family members," according to the expert.

In this interview, the DS PRIVATE coordinator reviews and analyzes the behavior of the luxury real estate market in Portugal, predicting how the market for buying and selling such properties will evolve. The Decisões e Soluções group decided to invest in the luxury real estate segment during the pandemic, creating DS PRIVATE. What are the conclusions of the activity so far? The creation of DS PRIVATE came naturally and out of a desire to create a specialized brand in this specific area - the luxury real estate market. The Decisões e Soluções Group has almost 20 years of experience in the Portuguese market and all its brands emerge organically, after we realize that clients are looking for a certain type of service. It was the same with DS PRIVATE, we realized that there was an interest in a certain type of property and decided to bet on a unique service focused on customers with specific needs and requirements.

Many investors find in this segment a "safe harbor" for their economic resources and want to continue investing. In these almost two and a half years of operations, we can give a very positive assessment of our performance and steady growth, both in terms of store openings and real estate portfolio, as well as in the number of customers, which continues to grow.

The fact that we operate in a segment that is not as dependent on economic cycles as other industries also helps us achieve these results. Many investors find in this segment a "safe harbor" for their economic resources and want to continue investing.

How many agencies do you have now?

Currently, DS PRIVATE already has 24 stores, including those open and under opening, all strategically located, and we plan to open eight more stores by the end of the year. At DS PRIVATE, we focus on personalized and high-quality service to our customers, and we want to be where we are needed, so we plan to spread across the country, mainly in major cities and in areas characterized by high property values and demand for the luxury real estate market. However, we also want to be accessible to anyone looking for our services so that they can easily find us by visiting our physical office. Although we already do a lot of online contact, we still prefer face-to-face contact with our clients because we believe that the buying experience is fundamental, especially when it comes to the luxury real estate market.

What are your plans for the coming years?

In addition to aiming to become the leading brand in the luxury real estate market in Portugal, we plan to start expanding overseas in 2023, with the intention of opening stores in North, Central and South America, Europe and Dubai.

Nevertheless, the greatest growth has come from foreign investment. Portugal has become very attractive for international investment, especially for American and Canadian investors. Our country is very attractive from a financial point of view, given the commercial value of real estate, even in the luxury segment, and the attractive tax incentives for foreign investors. Apart from these reasons, our country is very attractive to live in in terms of security, climate, landscape, hospitality and has a huge appeal to different countries. also in the field of higher education and healthcare.

We can say that Portugal is still an excellent country for investment, and the luxury housing market is strong, healthy, and highly recommended.

What types of real estate are in the highest demand? And where?

The most sought-after properties are always new or renovated ones, where high-quality finishes, modern technologies like smart home systems, and excellent thermal and sound insulation characteristics stand out, providing comfortable use and a sense of significant differences. On the other hand, in large cities, properties with spacious areas and comfort features, such as green spaces, swimming pools, and other outdoor amenities, are preferred. It is also noted that many prefer houses, in some cases on the outskirts of large cities, due to the provided conditions for space and privacy.

Naturally, the demand for the largest cities, such as Lisbon and Porto, remains very high. However, the pandemic has changed most people's perception of what it means to live in a home where one can also work, leading to a renewed demand for housing that combines quality living with the possibility of work and study for different family members. There is a growing trend of shifting demand to less urban areas, where homes can have different sizes and pleasant outdoor spaces that allow for a blend of leisure and work for various family members. Portugal is a small country with excellent roads and great network coverage, which helps to reduce both physical and digital distances.

What characteristics are most valued by customers?

When purchasing real estate, one of the most important factors for investors is the location and the surrounding environment of the property, especially when it comes to luxury real estate, where buyers seek a complete range of services, including the environment, accessibility, proximity to attractions, landscape, and neighbors—all these aspects influence their decision. The spaciousness of the rooms, including kitchens and living rooms, is also very important. Outdoor space is becoming increasingly sought after among investors.

Safety and energy efficiency are also very important aspects for buyers, who thus prefer complexes with constant monitoring and require information about the energy efficiency of the housing or building in which the property is located.

What is the profile of the investors? Are there more foreigners or locals?

Currently, most investors in this market segment come from abroad, with Americans being the most active investors in Portugal. The British, Germans, and French are also actively purchasing luxury real estate in Portugal. Portuguese investors continue to be active as well, but the biggest "boom" in demand for luxury real estate occurred during the pandemic.