Is this the year you start calling Portugal home? Find out which location will best suit your lifestyle and discover where you should buy in Portugal this year. Kyero's data and research gurus have been hard at work finding the 12 best destinations in Portugal for property investment in 2025.
From Porto's vibrant lanes to Faro's sun-soaked shores, from Ericeira's surf-washed coast to Amarante's vineyard-draped hills - we'll help you find your perfect Portuguese postcode in 2025!
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Why buy a property in Portugal?
With a remarkable blend of fascinating history and culture, stunning landscapes, and friendly people, it's easy to see why vibrant Portugal continues to be so popular with property buyers all over the world.
What is inspiring so many people to buy property in Portugal? Could it be the 3,000 hours of wall-to-wall sunshine, or maybe the wonderful delicacies, like port wine, bacalhau or pastéis de nata? When you think about it, it’s really no surprise that Portugal recently ranked as the 15th most popular country in the world for expats in Internations’ Expat Insider survey 2024. The country’s expat population currently stands at more than 700,000 (with nearly 47,000 hailing from the UK), which shows that the country’s allure is only growing! And with Portugal sitting at 7th place in the world for quality of life, we can understand exactly why more and more property buyers are considering the country for relocation.
For those looking to protect their budget when setting up in the sun, Portugal sits comfortably mid-table in Numbeo's 2025 European Cost of Living Index. What does that mean for property buyers? You’ll get more vinho verde for your money! Compared to Northern European countries and the US, you’ll see your money stretch further when both buying property and doing your weekly shop!
Whether you’re seeking a white-washed villa with an expansive terrace and sparkling swimming pool, or an Algarve apartment close to the action, you’ll find one in Portugal, often for under €120k if you’re not put off by a drive to the beach!
Albufeira has earned its spot as Kyero buyers' top Portuguese destination in 2024. This Algarve hotspot ticks all the boxes: Blue Flag beaches, historic castles, dramatic caves, and popular water parks. The bustling tourist scene and sizeable expat community mean you'll never be short of things to do or people to meet, while events like the Festa Al Buhera seafood festival add local flavour to the calendar.
Why buy property in Albufeira? The property market here tells a reassuring story of steady growth and stability - exactly what you want when investing in a coastal resort. With its proven track record and enduring appeal to both tourists and residents, Albufeira continues to offer solid investment potential in a location that delivers on its promises.
City-living entices many expats to put down Portuguese roots. Lisbon has the charm, edge, tradition and glamour that buyers are looking for and has remained the most popular expat location in Portugal - for good reason.
Beyond its atmospheric fado clubs and world-class museums, the capital's investment potential continues to grow in 2025. Major developments like the €2 billion Matinha project are transforming former industrial areas into vibrant urban spaces, with 2,000 new homes planned alongside schools and leisure facilities. Just outside the city, projects like Santo António dos Cavaleiros are adding 400 new apartments to meet growing demand. For buyers, historic neighbourhoods like Alfama, Baixa, and Chiado remain solid investment choices, while the Time Out food market showcases the city's culinary credentials.
Why buy property in Lisbon? With its blend of cultural attractions, urban regeneration, and proven market stability, Lisbon offers property investors both lifestyle appeal and growth potential.
Perched on the eastern edge of the Algarve, Vila Real de Santo António offers buyers a compelling mix of Portuguese charm and strategic location. This historic port town, with its distinctive 18th-century architecture and marina views, sits at the confluence of the Guadiana River and the Atlantic Ocean - making it a unique prospect for property investors in 2025.
Just a stone's throw from Spain and blessed with pristine beaches, the town combines authentic Algarvian life with modern amenities. The recently renovated waterfront promenade and historic central square showcase ongoing investment in public spaces, while the town's position as a gateway between two countries keeps its property market buoyant.
Whether you're drawn to traditional townhouses in the gridded historic centre or modern apartments with river views, VRSA (as it's known locally) offers comparative value against its western Algarve counterparts.
Why buy property in Vila Real de Santo António? With its blend of historic charm, border-town dynamism, and attractive price points, VRSA presents an opportunity to invest in a distinctive corner of the Algarve that maintains its Portuguese character while benefiting from cross-border appeal.
Perched above the Atlantic, Ericeira blends traditional Portuguese coastal life with a distinctly international vibe. This former fishing village, with its whitewashed houses trimmed in distinctive blue, has evolved into one of Portugal's most appealing expat destinations in 2025.
The surrounding Mafra municipality's explosive growth - with nearly 10,000 new residents in the past decade making it Portugal's second-fastest growing region - speaks volumes about the area's allure.
Beyond its world-renowned surf spots and laid-back beach culture, Ericeira offers investors a thriving property market that caters to both permanent residents and seasonal visitors. The town has managed to maintain its authentic charm while embracing modern development, with new amenities and infrastructure supporting its growing population.
Why buy property in Ericeira? With its compelling blend of coastal lifestyle, strong population growth, and proximity to Lisbon, Ericeira offers property investors the rare combination of established appeal and future potential.
Located at the mouth of the Mondego River, Figueira da Foz tempts property buyers with its unique blend of beach resort glamour and authentic Portuguese city life. This bustling coastal hub, known for having one of Europe's widest beaches, combines 19th-century casino charm with modern amenities and a year-round population that keeps the city vibrant even in winter. Beyond its impressive seafront promenade and art nouveau architecture, Figueira da Foz offers investors a stable market with room for growth in 2025. The city's strategic location - halfway between Porto and Lisbon - makes it particularly attractive to buyers seeking a balance between accessibility and value, while its university student population ensures a steady rental market, and a young, energetic vibe to the place.
Why buy property in Figueira da Foz? With its mix of historic grandeur, practical amenities, and attractive price points compared to Portugal's larger coastal cities, Figueira da Foz presents an opportunity to invest in an established resort city that hasn't lost its Portuguese soul.
Nestled along the Douro River, Porto offers historic charm, cultural sophistication, and modern innovation. Famous for its striking azulejo-clad buildings, world-renowned Port wine cellars, and vibrant food scene, Porto manages to retain its authentic Portuguese character while embracing a cosmopolitan, forward-thinking spirit.
The city's ongoing regeneration projects, particularly in the Bonfim and Campanhã districts, signal growth and fresh opportunities for investors seeking strong returns in a dynamic market. With a cost of living still lower than Lisbon’s and excellent transport links to the rest of Europe, Porto presents a compelling option for those looking to balance lifestyle, value, and long-term potential.
Why buy property in Porto? With its rich culture and stunning architecture, Portugal’s second-largest city is quickly becoming one of Europe’s most desirable places to live and invest.
Nestled in the heart of the Algarve’s prestigious Golden Triangle, Almancil is a prime destination for property buyers seeking a balance of luxury living and authentic Portuguese charm. Surrounded by world-renowned resorts such as Quinta do Lago and Vale do Lobo, this once-sleepy village has transformed into a cosmopolitan hub, offering a wide range of properties from traditional villas to sleek contemporary homes. Almancil's appeal lies in its proximity to some of the Algarve’s most stunning beaches, championship golf courses, and gourmet restaurants, making it a lifestyle destination for discerning buyers.
With Faro International Airport just 20 minutes away and year-round sunshine, Almancil is a convenient and sought-after choice for both holiday homeowners and permanent residents. The area’s strong rental demand, particularly during the peak summer months, ensures that properties here hold their value while offering excellent investment potential. Almancil has also become a hotspot for international schools and wellness retreats, making it particularly attractive to families and retirees seeking a premium lifestyle in Portugal.
Why buy property in Almancil? With its combination of luxurious surroundings, practical amenities, and continued development, Almancil represents a unique opportunity to invest in a highly coveted area of the Algarve. Whether you're looking for a holiday retreat or a permanent residence, Almancil offers a lifestyle of comfort and sophistication in one of Portugal’s most desirable regions.
Situated on the banks of the Tagus River, just a short drive from Lisbon, Alcochete is emerging as one of Portugal’s most exciting property markets for 2025. Known for its charming historic centre, traditional whitewashed houses, and stunning natural surroundings, this riverside town combines peaceful living with excellent accessibility to the capital. However, what makes Alcochete stand out in 2025 is its major infrastructure investment: the construction of Lisbon’s new airport. Once completed, this transformative project is expected to bring significant economic growth and increased demand for both residential and commercial properties in the area.
Beyond its strategic location, Alcochete offers a laid-back lifestyle with a focus on nature and outdoor living. The nearby Tagus Estuary Nature Reserve provides ample opportunities for birdwatching, hiking, and cycling, while the town’s restaurants and cafes serve up some of the best seafood in the region. With the Freeport Fashion Outlet, one of Europe’s largest shopping destinations, Alcochete also offers a touch of modern convenience.
Why buy property in Alcochete? With the new airport set to boost connectivity and property values, Alcochete presents a rare opportunity to invest in a town on the cusp of significant transformation. Its mix of riverside charm, close proximity to Lisbon, and future growth potential makes it an appealing choice for both families and investors looking to benefit from the next chapter in Portugal’s property market evolution.
Tucked into the foothills of the Marão Mountains and perched along the banks of the Tâmega River, Amarante is often hailed as one of Portugal’s prettiest villages. Known for its picturesque old town, charming stone bridges, and colourful flower-draped balconies, this timeless gem offers a unique opportunity for property buyers looking to embrace authentic Portuguese life in a tranquil yet well-connected location.
Amarante is steeped in history, with its 16th-century São Gonçalo Church and surrounding cobbled streets drawing visitors from across the country. Beyond its storybook charm, the town offers modern conveniences, thriving local businesses, and a lively cultural scene that includes festivals, markets, and art exhibitions. The region’s growing tourism appeal makes it an excellent choice for investors interested in short-term rentals, while its peaceful lifestyle continues to attract families and retirees.
Why buy property in Amarante? Combining stunning natural beauty with cultural heritage and a relaxed pace of life, Amarante is a place where tradition meets opportunity. With property prices still more affordable than larger towns in the Porto district, Amarante offers buyers the chance to invest in a charming, unspoiled corner of northern Portugal with plenty of potential for growth.
Nestled between the Atlantic Ocean and the lush green mountains of northern Portugal, Viana do Castelo is a city that perfectly blends history, culture, and natural beauty. Often referred to as one of Portugal’s most charming coastal cities, Viana do Castelo is known for its golden beaches, ornate Manueline architecture, and lively cultural traditions, such as the Romeria of Nossa Senhora da Agonia, one of the country’s most famous festivals.
The city’s strategic location on the Atlantic coast and easy access to Porto via the A28 motorway make it a popular choice for both holiday homeowners and permanent residents seeking a quieter pace of life without sacrificing modern amenities. Viana do Castelo is also a hub for outdoor enthusiasts, with surfing, hiking, and cycling opportunities on its doorstep. Additionally, the ongoing investment in infrastructure and the growing popularity of the Minho region as a tourist destination have made the city an increasingly attractive choice for property buyers.
Why buy property in Viana do Castelo? With its stunning coastline, rich cultural heritage, and affordable property prices compared to other coastal regions, Viana do Castelo offers a unique opportunity to invest in one of Portugal’s most picturesque and welcoming cities. Whether you're drawn to the historic Ribeira district or modern villas with sea views, Viana do Castelo provides the perfect balance of tradition, tranquility, and opportunity.
Perched on the dramatic southern coast of Madeira, Funchal is a city that offers year-round sunshine, stunning sea views, and a unique blend of Portuguese heritage and tropical island living. As the capital of Madeira, Funchal is a bustling yet laid-back city, known for its lush botanical gardens, historic cobblestone streets, and vibrant cultural scene. The city’s picturesque harbour welcomes both cruise ships and yachts, adding to its cosmopolitan flair, while the island’s unique landscapes make it a paradise for outdoor enthusiasts.
With a growing reputation as one of Europe’s top destinations for expats and retirees, Funchal offers excellent infrastructure, including modern healthcare facilities and international schools. The Madeira International Airport is just a short drive away, providing easy connections to mainland Europe and beyond. The city's property market is buoyed by strong rental demand, particularly for holiday homes and short-term lets, thanks to Madeira’s status as a year-round tourist destination.
Why buy property in Funchal? With its unparalleled natural beauty, favourable tax incentives, and a thriving property market, Funchal presents a unique opportunity for property buyers seeking an island lifestyle without compromising on modern conveniences. Whether you’re drawn to traditional quintas, modern apartments, or luxury villas with panoramic ocean views, Funchal offers a little slice of paradise for both investors and those looking to settle in this tropical jewel of Portugal.
Tucked away in the Beira Baixa region of central Portugal, Castelo Branco offers a blend of historic charm, affordable property prices, and peaceful countryside living. Known for its well-preserved medieval castle, ornate baroque gardens, and quaint cobbled streets, the city is rich in Portuguese heritage and boasts a strong sense of tradition. Despite its historical roots, Castelo Branco is a modern, well-connected city with all the amenities buyers need, including hospitals, schools, shopping centres, and cultural attractions.
What makes Castelo Branco particularly appealing in 2025 is its exceptional value for money in the property market. Homes here are significantly more affordable compared to Portugal’s coastal cities, offering buyers the chance to invest in spacious properties or rustic countryside estates without breaking the bank. The city is also surrounded by natural beauty, with the Serra da Gardunha mountains and the Tejo International Natural Park nearby, making it a haven for nature lovers.
Why buy property in Castelo Branco? With its affordable prices, rich cultural heritage, and growing appeal among buyers seeking a quieter lifestyle, Castelo Branco offers an opportunity to invest in one of Portugal’s hidden gems. Whether you’re looking for a family home, rural retreat, or investment property, Castelo Branco is an excellent choice for those looking to embrace authentic Portuguese living in a tranquil yet modern setting.
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