Urban expansion: Lisbon leads, but Porto holds untapped potential

Portugal and Spain are closely matched in terms of completed and pipeline branded residential projects. However, Spain is leading in urban development, with nine branded schemes across Madrid, Barcelona, and Marbella. Portugal, in contrast, has just six urban branded projects—all concentrated in Lisbon.

Porto, the country’s second-largest city, remains an untapped opportunity for branded residences. With international buyers increasingly drawn to Porto for both primary and secondary homes, the market is primed for growth. 

Another significant trend is the rise of non-hotel branded residences. Internationally, ‘lifestyle’ brands now account for 21% of the sector, particularly in urban markets. Portugal is embracing this shift, with projects by Karl Lagerfeld and YOO Studio set to debut in Lisbon. These developments signal a diversification of the market, paving the way for further growth in non-hotel branded residences.

Why now is the time for branding in new markets

In Portugal, branded developments in Lisbon and the Algarve typically achieve a 20%-25% premium over comparable non-branded properties. 

Portugal is a rare market where premium pricing and high sales speeds go hand in hand. For instance, W Residences Algarve sold over 50% off-plan upon its 2019 launch, making it Europe’s fastest-selling branded scheme at the time—all while achieving a notable price premium.

This unique combination of high pricing and rapid sales underscores the strength of Portugal’s branded residential market. With growing confidence among developers and brands, the sector is poised for continued expansion across the country’s distinct and emerging markets.

Further information

Contact Rosie Tucker

Branded Residences Reports - Archive - EMEA