The data from Market Report Portugal 2025-2026 from Engel & Völkers reveal that the Algarve is the region with the greatest weight and diversity in demand for second homes in Portugal.
According to the study, the second home continues to be a structural driver of the national real estate sector, with the Algarve standing out as the dominant destination and with a greater variety of areas for different buyer profiles.
Engel & Völkers says that “Quinta do Lago and Vale do Lobo are the exclusive destination in the Algarve”, with 60% of acquisitions in these areas intended for second homes.
Comporta emerges as the main aspirational alternative to the Algarve, while the West is emerging as a market undergoing complete transformation and with growing prominence. Cascais also maintains a relevant demand, although with a greater weight in permanent housing.
Quinta do Lago and Vale do Lobo stand out for their exclusivity
The Algarve continues to be an attractive destination for those looking for a second home, attracting national and international buyers. The diversity of the territory allows it to respond to a wide range of profiles, from premium segments to markets more linked to investment and seasonal use.
In Quinta do Lago and Vale do Lobo, 60% of purchases are intended for second homes. Prices can exceed 13 thousand euros per square meter and the profile of buyers is mainly international, representing 80% of demand, with emphasis on the English and Irish.
According to Engel & Völkers, acquisitions in these areas are usually made without the use of bank credit.
Vilamoura also stands out in the Algarve market, with a price variation of more than 106.2% in 2025, reflecting the presence of a more premium product, such as villas with pool and sea views and apartments close to golf courses.
In the areas of Albufeira and Carvoeiro, 43% of purchases are intended for second homes and 36% for investment, with only 21% for permanent housing. According to the study, this is the territory with the greatest imbalance in favor of seasonal use of residence.
Comporta and Oeste gain weight as alternatives
Outside the Algarve, Comporta asserts itself as the most aspirational second home market, supported by three main factors: the architectural identity of discreet luxury, the structural scarcity caused by environmental constraints and the proximity to Lisbon.
Demand in Comporta is strongly linked to second homes and investment, with transactions registering a recovery, particularly in Alcácer do Sal, where growth of 12.3% was reported in 2025.
The West is seen as the market undergoing the greatest transformation. Previously associated with weekend getaways, today it is seen as a structural destination, with 40% of purchases destined for second homes.
In this region, the buyer profile is mostly international, with 55% of demand, with North Americans, French and Germans standing out. Engel & Völkers’ average price is 3,103 euros per square meter, positioning Oeste as a more competitive alternative.
Cascais maintains a relevant weight in second homes, but with a higher permanent housing component, functioning as a hybrid lifestyle market.
“The second home market in Portugal continues to demonstrate a strong capacity for resilience. The Algarve remains the main reference, but we are currently witnessing the growth of areas such as Comporta and Oeste, which is largely due to the appreciation of the lifestyle on the part of buyers”, highlights Margarita Oltra, Regional Manager at Engel & Völkers.
“This is a factor that has increasingly greater influence when choosing the location for a second home. The growth of regions that serve as an alternative to the Algarve reinforces the country’s attractiveness to international buyers and further captivates national buyers”, he adds.
The study concludes that the demand for second homes confirms the growing sophistication of the residential market in Portugal. This type of housing is no longer just a luxury or an option for getaways, but now reflects choices linked to specific lifestyles.
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