Middle East conflict spurs interest in luxury homes in Portugal

Instability in the Middle East is having a positive impact on Portugal’s luxury real estate market with an increase of interest and inquiries.

Real estate agencies in the luxury segment are already seeing more inquiries for medium-term rentals and ready-to-live-in properties, but it is still too early to conclude that the conflict between the US, Israel and Iran is causing a general increase in luxury home purchases in Portugal.

Interest in the high-end segment is most visible, although that doesn’t always translate into acquisitions.

There may even be a cooling of interest in moving to Dubai or Abu Dhabi, as Liam Bailey, who analyses and produces real estate reports for the consultancy Knight Frank, the international branch of Quintela e Penalva in Portugal, explained to the online news source ECO.

While some see Portugal as a safe haven, for others the uncertainty is also producing the opposite effect, postponing investment decisions and changes of country. Bailey has noticed this particularly in London.

Miguel Poisson, CEO of Portugal Sotheby’s Realty in Portugal, said that the estate agency has observed a “growing trend of international investors redirecting their investments to geographies considered more stable and secure,” among which Portugal continues to stand out.

Sotheby’s has also noted “greater interest from Dubai clients,” particularly investors and developers seeking land or properties with potential for new ventures.

However, demand isn’t moving in just one direction. Miguel Poisson acknowledges that some clients who had already planned to buy before the conflict escalated have suspended or postponed decisions, or started looking elsewhere.

“Portugal is once again becoming a solution, not for tax reasons, but for reasons of security, quality of life, political stability, climate, and ease of integration,” he concludes.

Source: ECO, Credits: Portugal Sotheby’s Realty. This Cascais luxury property is going for €33 million.