Portugal today has 725 more ultra-wealthy residents than it did five years ago. But who are these people? Where does their wealth come from? And why do they keep choosing Portugal as a place to live and invest? According to a recent study by British firm Knight Frank, the Prime International Residential Index (PIRI) reveals that the number of ultra-wealthy individuals — folks with a net worth of at least €25 million, known as ultra-high-net-worth individuals (UHNWIs) — has surged in Portugal by almost 50% over the last five years. Back in 2021, the country had 1,462 ultra-wealthy individuals, and by 2026, that number is projected to rise significantly. It’s no surprise that many of these new residents are Portuguese, particularly entrepreneurs.
Now, let’s break it down. Helena Seruca, co-ordinating director of private banking at Banco Carregosa, told Euronews that individuals with this level of wealth are primarily focused on asset protection, tax planning, and succession. Banco Carregosa specializes in wealth management for high-net-worth clients, mainly serving Portuguese entrepreneurs from northern and central regions. These business owners are often tied to industrial sectors like footwear, textiles, glass, plastics, and wood, but they are also branching into new technologies and services.
The increase in UHNWIs over the past five years doesn’t shock Seruca. She points to the post-pandemic era as a critical turning point in wealth creation. “Especially since the post-COVID period, we’ve seen these clients’ assets grow following the sale of companies,” she explains. There’s been a massive influx of private equity into companies lately, resulting in many entrepreneurs sitting on substantial cash reserves. Private equity funds, which invest in unlisted companies to boost their value over the medium to long term, have gained a solid foothold in Portugal, paving the way for a fresh wave of ultra-wealthy entrepreneurs.
But wait, it gets even more interesting! Many business owners are selling stakes in their companies to fund expansion or break into new markets without dipping into their own capital. “A private equity deal basically means taking a position in a company via a venture capital fund, which might or might not engage in management. It all depends on the acquired stake and the investor’s ambitions,” Seruca adds. And let’s not forget about lifestyle choices here! Wealthy individuals often jet to Portugal just for the weekend — especially to hit the golf courses in places like Cascais, Comporta, and the Algarve. Some land in their private jets, spend a few days soaking it all in, and guess what? They end up buying homes!
Take the Terras da Comporta development, for instance, centered around a championship golf course that opened in 2023. This project has been a magnet for international buyers looking for luxury homes and development plots. According to a global study from Christie’s International Real Estate, the international luxury housing market is booming, and affluent buyers are increasingly on the lookout for primary residences, second homes, and portfolio diversification. Entry-level high-end homes are priced around €6,500 per square meter, while luxury properties can go for about €11,000 per square meter. The ultra-luxury market is heavily concentrated in prime locations like Cascais, central Lisbon, Comporta, and the Algarve, which leads the market in branded residences, boasting around 1,200 units representing 30% to 50% of the country’s offerings.
Now, here’s the kicker! This option allows wealthy buyers to arrive and enjoy all the amenities of a hotel linked to their flat. When they leave, they can put the property into hotel management, generating income with zero effort on their part. Lisbon and Cascais have emerged as Europe’s second most represented market, even ahead of London and Madrid. Cília mentions that property prices in these areas are now competing with Europe’s current price ceiling.
And guess where the new buyers are coming from? The Middle East, particularly Qatar, has emerged as one of the fastest-growing sources of new buyers, driven by recent geopolitical tensions that have left investors looking for safer havens. “Right now, they are hunting for safer investment alternatives. The greater the global instability, the more appealing this market becomes, as it’s a euro-denominated market, politically stable, and part of the European Union, making it an excellent alternative to more volatile markets,” Cília explains.
However, Cília does caution that limited supply might hamper future growth. “These individuals want a completely different style of construction in highly privileged areas, and let’s face it, Portugal isn’t exactly a vast country.” Knight Frank predicts that the ultra-high-net-worth population will keep expanding, potentially reaching 2,452 by 2031. The report indicates that increasingly mobile wealthy individuals are following a so-called “dip-in, dip-out” lifestyle, making Portugal one of the leading destinations for international wealth and luxury property investment.
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Kaynak: Orijinal Haber
