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Is it worth investing in luxury apartments?

Are luxury apartments a safe and profitable investment model or just a way to ensure all the comfort and security of your family?
In this article you will get to know, one by one, the main characteristics of luxury real estate in Portugal and the reasons why it is worth buying quality.


Luxury apartments characteristics

Spacious flats? Yes, luxury flats are always spacious, but there are other characteristics that distinguish them from the others: they are projects of sophisticated architecture, strategically located, with well-planned design and exclusive services, among other particularities that determine a high standard of quality:


  • Square metre price

Let's start with the obvious! Luxury flats have a value per square metre above the market average, which in Portugal in January 2023 stood at 2,467€/m2.


  • Privileged location​

Luxury properties, to be considered as such, need to be inserted in compatible areas, that is, in tree-lined streets with other luxury properties, easy access, availability of services and leisure and cultural spaces, among other benefits that ensure the quality of life of the residents... and status!


  • Quality finishings​

Another point in common between the different types of luxury homes in Portugal, are the quality finishes and high-end construction materials: fine woods, marble surfaces, glass with acoustic insulation, very refined coverings, among other aspects that guarantee the quality, but also the beauty and durability of the property... and reduce the need for maintenance and renovations!


  • Projects signed by renowned architects and designers​

Yes, luxury apartments usually have a kind of label with the signature of architects or interior designers renowned nationally and internationally, which adds a lot of value to the properties. There are also construction companies that specialize exclusively in luxury flats.


  • Amenities ​

Whether it is a flat or a villa, a luxury house in Portugal is always designed to meet the needs of a very demanding investor public and therefore has spacious and functional suites and rooms that ensure the comfort and well-being of the residents, several bathrooms, balconies, terraces, garages and even jacuzzis and swimming pools.


  • Differentiated services

In addition to the amenities, luxury apartment complexes in Portugal offer differentiated services such as concierge service, with a 24-hour receptionist/concierge available to residents or a spa, gym, children's playground, swimming pools, etc.


  • Security​

Investors in luxury real estate demand security and privacy, and builders do not disappoint them! Thus, this type of flats usually have security cameras, alarm systems, electronic identification mechanisms and full-time doorman or security teams doing constant surveillance.


  • Technology​

With technology invading the real estate sector, luxury flats have all (and some more) features to offer more comfort and convenience to residents: heated floors, controlled lighting, voice assistants to turn off equipment, biometric locks and surveillance cameras, among other equipment.


  • Sustainability​

Increasingly attentive to the impact of their activities on the environment, builders began to include sustainable measures in the construction of quality flats that range from the decoration project to the use of natural light, LED lighting, gas central heating, dual flush flushes and other equipment that contribute to sustainability and also to the appreciation of the house.

Top reasons to invest in luxury flats

Of course you already know that buying property in Portugal is one of the best, safe and profitable forms of investment, but are luxury apartments a good option? Read on to know the main reasons to invest in luxury flats!


  • Comfort and security​​

If the investment is for the family, know that luxury properties guarantee comfort and security to the residents, always with cameras placed in strategic places, leisure spaces, wooded areas and sports equipment, just to mention a few extras!


  • High demand​​

If you want to monetize your investment, we have to tell you that the demand for luxury flats is always on the rise (particularly by foreign investors) much due to the scarcity of supply, i.e. the fact that in the real estate market, high quality properties are built on a smaller scale, even in more touristic cities that attract entrepreneurs.


  • High profitability​

The high demand for luxury real estate in Portugal results in a valuation that always brings a high return on the initial investment.
If the financial return is on average 3% for real estate investment in Lisbon, for example, for luxury real estate that percentage is even higher, reaching 4.3%, according to Knight Frank's 2022 report: Lisbon market in numbers.
Moreover, the potential for appreciation also happens because people with more purchasing power are the ones who suffer less from potential financial crises, so there is no bad time to buy (or sell) a luxury home!


Therefore, the moment could not be more favorable for you who are looking for a luxury flat to live in or to diversify your investment portfolio with a safe asset. All that's left is to get in touch with a luxury real estate agency in Portugal, specialized in selling and renting dream homes, in the best areas of the country!

Contact us now
Engel & Völkers
Licence Partner Portimão

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