Combining luxury living with 5-star hotel-style amenities, Portugal’s branded residences are perfect not only for those with global lifestyles, but for investors too
Portugal’s branded residences sector is experiencing extraordinary growth, positioning the country as one of Europe’s most attractive destinations for luxury real estate investment. With over 1,200 new branded residence units forecasted to come online by 2031, the market in Portugal is set to grow by 130%, driven by strong demand from international buyers seeking high-end properties that offer both a luxury lifestyle and financial returns.
Branded residences offer more than just a home – they provide a lifestyle. With services ranging from concierge assistance to private chefs, personal trainers, and spa treatments, these residences cater to every need of their residents. Many of these developments also foster a strong sense of community, bringing together like-minded individuals who value both privacy and a resort-style atmosphere.
For high-net-worth individuals who own multiple homes, the appeal of branded residences lies in the consistency of service and quality. These properties are managed seamlessly, offering peace of mind for those with global lifestyles. The ability to “lock up and leave,” with the property being maintained and managed in their absence, is an added convenience that sets branded residences apart.
“Branded residences offer more than just a home – they provide a lifestyle”
Market expansion and investor confidence
Portugal’s branded residences market is not only expanding in volume but also in prestige. Lisbon ranks second in Europe for the number of projects, behind only London, making it one of the most sought-after locations for luxury real estate investment. Meanwhile, the Algarve continues to be a key player in the resort-based branded residences segment, with six new schemes expected to launch over the next five years, adding over 700 units. As the market continues to grow, new schemes combining lifestyle amenities still with good access to urban centres are also in development in both Porto and coastal areas like Comporta.
Savills forecasts an “extraordinary growth rate” for Portugal’s branded residences market over the next five years, signalling strong investor confidence in both the long-term viability and profitability of these properties. The country’s appealing mix of high-end real estate, favourable tax conditions, and growing international interest makes it an ideal market for investors looking for opportunities in luxury residential developments.
Tax benefits and financial incentives
Portugal’s attractive tax regime is a key draw for investors. The country has no inheritance tax on direct family members, making it an ideal location for estate planning. This benefit, combined with Portugal’s Non-Habitual Residency (NHR) tax regime, which has attracted many international buyers, strengthens the country’s appeal as an investment destination. Although the NHR scheme closed to new applicants in 2023, the newly introduced NHR 2.0 offers a flat 20% tax on professional income and 0% tax on foreign pension income for eligible individuals: strengthening Portugal’s attractiveness as a prime location for international investors and retirees.
In addition to the NHR schemes, Portugal offers a variety of residency options, including the Golden Visa programme, which grants residency to investors who meet certain financial criteria. These programmes, combined with Portugal’s favourable tax policies, offer significant financial advantages for those looking to relocate or invest in the country.
Martinhal Residences: A luxury offering
Among the notable developments in Portugal’s branded residences market is Martinhal Residences, which was the first luxury family-oriented branded residences in Lisbon, offering a unique blend of high-end living with family-focused amenities. As part of the growing trend of branded residences, Martinhal has captured the attention of affluent international buyers who seek not just a luxurious home, but a lifestyle tailored to families. These residences offer spacious apartments designed with families in mind, featuring child-friendly environments and top-tier amenities such as childcare services, family concierge, and range of on-site recreational facilities.
“Cities like Lisbon and Porto offer strong potential for long-term value appreciation”
Investment returns and rental yields
Branded residences are also known for offering strong rental yields, and Portugal is no exception. Cities like Lisbon and Porto offer strong potential for long-term value appreciation, while resort areas such as the Algarve attract high interest from investors seeking lucrative returns, particularly in the short-term rental market. Premium properties in these regions continue to outperform in terms of demand, driven by their desirability as exclusive destinations. The association with globally recognised brands and the provision of top-tier services make branded residences a highly attractive option for both short-term stays and long-term investments.
As Portugal continues to attract a growing number of affluent international buyers, branded residences are emerging as a safe and profitable asset class. With their combination of luxury, convenience, and strong rental demand, they offer both a premium living experience and excellent potential for long-term value growth. For investors looking to diversify into Portugal’s luxury real estate market, branded residences represent an exciting opportunity to capitalise on the country’s increasing prominence on the global stage. With a clear path for growth and a reputation for quality, the future of branded residences in Portugal looks exceedingly bright.
Further information
All images show martinhalresidences in Lisbon.