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Cascais Leads Ranking of Most Expensive Residential Areas in Portugal
21 September 2017
The German group Engel & Völkers, one of the world leaders in luxury real estate, has been present in Portugal since 2006. It announced a ranking of the most expensive residential areas in Portugal. Cascais, Baixa de Lisboa and Albufeira took the top 3 places.
The Avenida Marginal in Cascais (where property prices reach 13,690 euros per square meter) tops the ranking. For example, Engel & Völkers reports that “a mansion with seven rooms facing the sea can sell for 14 million euros. However, a six-bedroom villa can be purchased for 4.6 million euros.”
Small palaces, manor houses, farms and villas and chalets with marked and differentiated characteristics and which “which preserve the XIX century court experience,” predominate in the Cascais area, it emphasises. “The exceptional location, temperate climate, proximity to beaches and golf courses and high-calibre international events, are factors that attract domestic buyers, foreign nationals and some celebrities, who choose to live in Cascais,” the report stated.
Lisbon occupies second place in the ranking, more precisely Vitor Cordon Street and Páteo do Pimenta, where the square meter can run 11,000 euros, and Rua da Emenda, where the square meter can reach 10,000 euros. Chiado, Príncipe Real and Avenida da Liberdade are considered the most exclusive areas in the capital.
In Lisbon, according to the study, the luxury market offer is distinguished essentially by “properties with large areas, in completely remodelled buildings which can be hundreds of years old and maintain the traditional architectural characteristics in the facades and interior, with high ceiling or tiles on the walls. Large terraces or balconies with river views are other attractions.” “A three-bedroom flat can cost 1,200,000 euros and a four-bedroom property can reach 1,600,000 euros.”
South
In the south, the Algarve has two places in the ranking and Albufeira occupies the third place. Olhos de Agua, Baleeira and Galé are the preferred locations for those looking for a luxury home to live or vacation in, where the value per square meter ranges from 5,600 euros in Galé to 7,000 euros in Pine Cliffs Resort (2016 prices).
Usually highly sought after for secondary housing, areas in the south are marked by proximity to the sea, easy access to the beaches, type of architecture and the age of the property. “These factors determine the value of the building, with sea views being the most preponderant.”
As examples, “a villa with swimming pool in the Pine Cliffs Resort condominium, in Olhos de Agua, costs 4.5 million euros. In Galé, a villa close to the sea, with four bedrooms, garden and pool, reaches 3.2 million euros, while a similar villa around Baleeira can reach 2.9 million euros.”
Vilamoura is in the fourth position, with the Marina, the central area of Vilamoura and the areas where the golf courses are located, commanding the highest prices. The figures per square meter are around 5,365 euros in Volta da Corça, 5,032 euros in Pinhal Velho and 4,296 euros in the Lake Resort.
Other areas
Comporta, on the Alentejo Coast, is in fifth place. Muda, Brejos da Carregueira de Baixo and Praia do Pego are the most exclusive locations in this area, where the price per square meter oscillates between 4,500 and 5,000 euros. Here, the real estate market has a wide and diversified range of products, catering to different sets of needs. A beachfront villa with six bedrooms in Melides can reach 4 million euros, while in Brejos da Carregueira a five-bedroom villa costs 1.3 million euros. In this market, buyers are mostly foreign (about 80%).
Sintra appears in sixth place, with Penha Longa, the historic centre and the Belas Clube de Campo as the exceptional locations, where prices per square meter range from 4,000 euros to 4,800 euros. Foreign buyers and investors account for 75% of demand.
Engel & Völkers also highlights the “Venice of Portugal”, that is, Aveiro, with Costa Nova and Barra being in Ílhavo, and Vera Cruz and Glória in Aveiro, the most exclusive areas in this coastal zone. With prices per square meter varying between 2,090 and 2,678 euros, this region of the Centre of the country is starting to receive visitors throughout the year, no longer so subject to the seasonality of tourism. In this area, although domestic buyers still predominate (74%), there are more and more foreigners investing in high-end real estate.
Buyers’ origins
According to the ranking – which took as its base registrations, analysis and the portfolio of the company’s Portuguese branch network, and uses data referring to the first quarter of 2017 -, the location of the property together with local characteristics can usually determine the origin of any buyers.
In this sense, “in the capital, coastal areas, tourist areas and south of the country, foreign buyers (between 75% and 90%) outnumber the national buyers (between 10% and 20%). Towards the north, the opposite is the case, with around 75% of Portuguese buyers versus 25% international buyers.”
French, German, Swiss, Belgian, British, American, Brazilian and Indian, are the main nationalities among international buyers.
Foreigners surrender to Portugal’s charms
In sum, Engel & Völkers says that “the Portuguese real estate sector is well-positioned vis-à-vis competitors, as the country benefits from a situation where issues such as security, political stability and geographical proximity to Europe are increasingly valued.”
The heads of the agencies that contributed to this analysis point to the continued demand for both urban centres and the more holiday-oriented areas. They highlight the south of Portugal, where increased demand for secondary luxury housing is considered “a factor conducive to the evolution of business.” “Portugal continues to be a destination of choice, not only for tourism, but also for investment,” the report stated.
Original Story: Construír – Ana Rita Sevilha
Translation: Richard Turner