Madeira Leads Foreign Searches for Homes
Madeira has become the region of Portugal with the highest share of foreign interest in homes for sale. According to data from the real estate platform Idealista, 42 percent of people searching for properties on the island in the second quarter of 2025 came from abroad. Faro (36 percent), São Miguel in the Azores (34 percent), and Viana do Castelo (30 percent) followed as the next most sought-after regions by international users.
In contrast, Lisbon, Évora, Setúbal, and Porto recorded less than 15 percent of searches from outside Portugal. These areas remain mainly driven by domestic demand.
Where Does Foreign Demand for Homes in Portugal Come From?
On Madeira, Germans led with 18 percent of searches, followed by British users with 17 percent and Americans with 10 percent.
Foreign Purchases in Portugal at Their Lowest Level Since 2021
Despite the strong activity on real estate portals, the actual share of property purchases by foreigners has decreased. According to the National Statistics Institute (INE), international buyers acquired 2,098 homes in Portugal in early 2025, representing 5.1 percent of total transactions. This is the lowest proportion since the second quarter of 2021.
The end of golden visas and the termination of the non-habitual resident regime, replaced by a more restrictive system, help explain this drop
Domestic and International Factors at Play
Analysts point out that while interest remains high, several domestic and international factors have influenced the market. Portugal recently saw changes in immigration laws, with one proposal returned to Parliament after the Constitutional Court identified irregularities. External economic and political conditions also weigh on decisions by potential foreign buyers.
Source: Idealista
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