Portugal’s Algarve region has once again cemented its reputation as a prime location for luxury property, ranking 25th globally in Knight Frank’s The Wealth Report.

The report, published in partnership with Quintela + Penalva, shows the Algarve’s high-end real estate market grew by 5.6% in 2024, outperforming cities such as Paris, Zurich, Barcelona and Lake Como.

This places the Algarve just behind Porto, which saw a 6.8% rise (17th place), and ahead of Lisbon with 5.3% (28th place). The report highlights Portugal’s consistent appeal to international investors, crediting lifestyle, safety and culture as key drivers of continued demand.

Southern Europe stood out in this year’s global rankings, with 8 of the top 10 performing European markets located in Portugal, Spain, Italy and Greece. Notably, Corfu (8.9%), Porto and Lucca (6.2%) led the region’s luxury market growth.

In total, 77 of the 100 markets tracked by the Prime International Residential Index (PIRI) posted positive growth.

Though the Algarve slipped from its previous top 5 global position due to a surge in performance from Asian and Middle Eastern cities, it remains one of Europe’s most attractive investment destinations.

Whether purchasing a second home, investing in luxury rentals or even exploring modular construction, working with a knowledgeable local estate agent ensures access to tailored advice and opportunities that reflect the region’s current performance and long-term potential. For expert advice, contact the Algarve Home Sales team.