Demand for luxury homes in condos increases in Portugal

Luxury homes in gated communities and condominiums have been gaining popularity, with increased interest from buyers seeking exclusive properties with privacy and guaranteed security in the Portuguese market.

In a global context marked by strong geopolitical tensions – from the war in Ukraine to the worsening conflict in the Middle East, along with other economic and social problems around the world – the true luxury is living in peace and security. And Portugal stands out on the international stage as a haven for living and investing, given its stability and low crime rates compared to other countries according to online housing market specialists Idealista.

Portugal is considered one of the 10 safest countries in the world. However, the supply of premium properties within this type of development is not only geographically limited, but also scarce.

Specifically, listings for luxury homes – costing over €1 million – located in gated communities have fallen by 27% in the last year, according to the most recent data from idealista/data, covering the three months ending in February 2026. The same analysis concludes that there are just over 2,000 premium homes for sale in private developments in our country, and more than 85% of these residential properties are located in Lisbon, Porto, and Faro.

The reduction in the stock of luxury homes for sale in private condominiums was observed in almost all districts and islands with significant samples – the only exception was Setúbal, where supply grew by 1%. Lisbon saw the largest drop in supply (-37%), followed by Leiria (-35%) and Faro (-28%).

The greatest pressure from demand for homes combining luxury, privacy, and security was felt in Lisbon and Setúbal, even increasing by 14% and 43% respectively in the last year. There was also an increase in buyer interest in premium homes in gated communities in Faro (+5%). In the remaining Portuguese territories, demand pressure fell during this period – including the Porto district and the island of Madeira.

Lisbon and Setúbal: Where Luxury and Security Come at a Higher Price

The price of buying a house with exclusivity and security – to live in or to invest in – is not uniform across Portugal, varying by several thousand euros between different districts and islands and house prices can inflate due to the potential contamination of construction costs by rising energy prices resulting from the war in Iran.

Meanwhile, premium homes for sale with high security and lower median prices are located in Leiria (€1,125,000) and Braga (€1,200,000), according to data from idealista/data.

It is in Setúbal where luxury homes in gated communities are most expensive, with median prices around €1,980,000 in the last quarter ending in February. Lisbon follows closely behind (€1,800,000). In Faro, on the island of Madeira, and in Porto, the price is around €1,500,000.

Despite a decline in supply and demand for high-end private residences in Porto, prices for these properties grew by 4% in the last year, the largest increase recorded geographically. Besides Porto, the cost of these luxury homes with privacy only increased in the Portuguese capital (+1%), which can be explained by growing demand that absorbed the existing stock.

On the other hand, the price of luxury homes for sale in gated communities remained stable in southern Portugal, in Faro, and fell in the other four districts and islands analysed, with the largest drop recorded in Leiria (-18%), in relation to the analysis of this market segment in the last year.

Source: Idealista; Credits: Freepix