Which Portuguese Cities Are Attracting Foreign Property Buyers?
According to the latest analysis by idealista, international demand in Portugal’s property market remained strong in May 2026, particularly in the country’s island cities and major metropolitan areas.
The study examined international demand for both properties for sale and rental listings across Portugal’s 20 largest cities. The findings show that although domestic buyers continue to be the main driving force behind the housing market, foreign buyers account for a significant share of demand in many cities.
Among the 20 cities analysed, 15 recorded double-digit shares of international demand for homes for sale. Funchal, the capital of Madeira, recorded the highest proportion of international property searches at 22%, followed by Ponta Delgada in the Azores at 20%.
By comparison, international demand accounted for 12% of property searches in Porto and 10% in Lisbon. These figures suggest that, beyond Portugal’s traditional urban centres, the country’s island regions are becoming increasingly attractive to overseas buyers.
Buyers from the UK, the US and France Lead International Demand
The study also reveals clear differences in the origin of international buyers across different cities.
British buyers were the leading source of international demand in Funchal, Faro, Castelo Branco, Setúbal, Portalegre, Beja and Santarém, reflecting continued interest in southern Portugal, the islands and regions offering a relatively lower cost of living.
American buyers ranked first in Ponta Delgada and also generated the highest level of property searches in Aveiro, Porto, Lisbon and Coimbra. This trend is consistent with the growing interest among Americans in Portugal’s lifestyle, educational opportunities and remote working environment.
French buyers ranked first in Viana do Castelo, Bragança and Leiria, while also placing second in several other cities, demonstrating sustained interest in Portugal’s northern and central regions.
Rental Market: Braga, Lisbon and Bragança Attract Strong International Demand
Compared with the sales market, international demand in the rental sector is even more pronounced in several cities.
Among Portugal’s 20 largest cities, 16 recorded double-digit shares of international demand for rental properties. Bragança registered the highest proportion at 20%, followed by Braga and Lisbon, both at 19%.
The data indicate that international tenants are no longer concentrated solely in traditional major cities such as Lisbon and Porto. Cities like Braga, known for their strong educational institutions, growing technology sector and relatively affordable cost of living, are increasingly attracting international students, expatriate professionals, new immigrants and remote workers.
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