Portugal’s luxury real estate market – “we’ve only just begun” says Vanguard Properties CEO, José Cardoso Botelho

The CEO of Vanguard Properties, José Cardoso Botelho, says that the luxury housing market in Portugal is still in its infancy with relatively few luxury property developments.

In an interview with the newspaper SOL, Botelho points out that the same is true for branded residences.

He said that although the market was attracting Portuguese buyers, the high luxury segment was “dominated by international clients” in a market that was becoming increasingly more diversified.

Botelho says that the luxury real estate market is still in its relative infancy and adds that it has “great potential to grow and is growing thanks to both Portuguese and overseas demand”.

And adds that “often people use the word ‘luxury’ when in fact it’s often not and that ‘premium’ does not mean luxury”.

In the case of Vanguard Properties, the first truly luxury development the developer did were the apartments on Lisbon’s Rua Castilho 203. Luxury, he remarks, means “a whole set of criteria” such as the architectural design, amenities, services, interior design, and the materials used for the fixtures and finishes.

He adds that luxury is about is about attention to detail. For example, at Castilho 203 there is a high hall and indoor and outdoor private pools, gym, spa and cinema room, as well as art pieces throughout.

This improves the shared spaces of the building and makes it truly luxury. On the other hand, its Infinity building overlooking the Monsanto Park is premium because it “does not have the same level of finishes” but does have large shared spaces.

Botelho also debunks the myth that mainly overseas buyers purchase luxury and premium apartments.

For example, in 2024, 94% of buyers were Portuguese while the amount of mortgages involved on the price of sale represents around 51%.

In other words, when a client buys a property, 51% of the price is bought through a mortgage and 49% with their own capital which counters the idea that these properties are all bought on credit. “The Portuguese are continuing to buy”, he says.

However, he says that in the luxury segment, more of the buyers are international, but “that probably goes for many markets”.

Botelho also says that Portugal has been benefitting from instability in markets like the United States and other countries, bringing overseas nationals who want a second residence.

“We’re also looking at the Canadian, Brazilian and Mexican markets, and even buyers from Madrid, while there is demand from Germany, France, Belgium, Switzerland, and even Poland”.

“It’s very varied and that’s just as well so we’re not dependent on just one nationality, while on the other hand it’s also not good to have a concentration of one or two nationalities (in one building) since that puts off others,” the CEO of Vanguard Properties concluded.

Image: Claude Berda (L) and José Cardoso Botelho (R) founders of Vanguard Properties