EXPRESSO publishes interview with João Freitas Fernandes, CEO of VILLAS, ‘a MAP Group Company’, on the topic: “The New Real Estate Luxury in Portugal: Exclusivity, Sustainability, and Customization.”
Read the full interview below.
1. How would you currently describe the demand for luxury residences in Portugal? Who are the typical buyers, and what do they value most?
Demand for luxury residences in Portugal remains strong and on an upward trend, even amidst a backdrop of global economic uncertainty. We’re seeing growing interest in properties that combine exclusivity, quality of life, and long-term investment potential. There is a clear distinction between conventional luxury (ranging from €1M to €5M) and ultra-luxury (above €10M). Demand is steady in both segments. Buyer profiles are diverse, but we highlight high-net-worth international investors — particularly from France, the UK, the US, Brazil, and Northern Europe — alongside a growing segment of affluent Portuguese buyers. Foreign investors often view Portugal as a “safe haven,” seeking second homes or investment properties, while local buyers prioritize access to premium locations and a sophisticated lifestyle. Key value drivers include prime locations (sea views or proximity to city centers), privacy, high-end materials with integrated smart technologies that enhance efficiency and sustainability, as well as personalized experiences and overall well-being.
2. Which regions of the country are emerging as prime destinations for this segment? Do the Algarve and Cascais still dominate, or are new trends emerging?
The Algarve and Cascais continue to dominate the luxury market, thanks to their well-established infrastructure, coastal appeal, and attractiveness to international buyers. However, we are witnessing significant growth in other regions with high potential. The Alentejo — particularly Melides and Comporta — has gained prominence due to its authenticity, natural expanse, and privacy, attracting buyers seeking exclusivity and an escape from more traditional tourist circuits. The Porto/Douro region, with its luxury estates, is also emerging as a niche for those who appreciate heritage and unique landscapes. Lisbon remains strong, especially areas like Sintra and the riverside zones. These trends reflect a growing demand for diversity and authenticity, complementing the traditional hotspots. As a point of interest, the latest edition of The Wealth Report by Knight Frank placed Portugal in three separate positions on its Prime International Residential Index, which tracks the performance of 100 global locations, including major cities and resort destinations. The Algarve ranked 4th, Porto 29th, and Lisbon 60th, all showing growth between 5% and 12%. This puts Portugal ahead of highly recognized luxury markets such as London, New York, Hong Kong, Paris, Geneva, and Miami.
3. What are the main challenges in developing luxury boutique villas in Portugal, from permitting to skilled labor?
There are several challenges, starting with the permitting process, which can be slow and complex due to bureaucratic hurdles and variations between municipalities. We usually enter projects after this initial phase, so the impact on our operations tends to be limited to potential delays in tender outcomes. The most significant current obstacle is undoubtedly the shortage of skilled labor — a situation exacerbated by the high overall demand in the construction sector. Finding professionals specialized in luxury finishes, such as custom carpentry or the installation of advanced technologies, is an ongoing challenge. Additionally, the high cost of premium materials — often imported — and the pressure to meet tight deadlines without compromising quality are issues we face daily. Being part of a major construction group helps us mitigate some of these constraints, but seamless coordination across all phases and excellence in execution remain essential.
4. Sustainability and innovation are increasingly important in the luxury segment. How is your company incorporating these trends into its projects?
Sustainability and innovation are strategic pillars for us. In our projects, we integrate solutions such as energy-efficient systems — solar panels, high-performance thermal insulation, and certifications like LEED or BREEAM — to reduce environmental impact and long-term costs. We use sustainable materials, such as certified woods and locally sourced stone, minimizing our carbon footprint without compromising aesthetics or quality. In this regard, we have a strong partnership with Portugal’s leading supplier and installer of wood structures and finishes, which allows us to stay ahead of the latest design trends in luxury villas. On the innovation front, our in-house technical expertise enables us to incorporate cutting-edge smart home technology — including advanced systems for lighting, climate, and security control — along with bioclimatic designs that optimize natural light and ventilation. This approach meets the expectations of clients who view luxury as a blend of exclusivity and environmental responsibility, while positioning us as a company aligned with the future of the sector.
5. How have economic instability and legislative changes (such as the end of the Golden Visa program) affected foreign investment in this sector?
Global economic instability — including inflation and high interest rates — has had limited impact on the luxury segment, which remains resilient due to the profile of its buyers: high-net-worth individuals who view real estate as a safe-haven asset. Legislative changes, such as the end of Golden Visas for urban real estate investments, have introduced some caution among foreign investors, particularly those who saw the program as a gateway to European residency. That said, the impact has not been drastic, as Portugal continues to attract buyers thanks to its climate, safety, and quality of life. We’re also seeing a shift toward investments in rural areas or sustainable projects that still qualify for residency programs. Our ability to adapt projects in response to these changes has been essential in maintaining foreign interest.
6. What elements truly set a luxury villa in Portugal apart? Is it the design, materials, technology, or the exclusivity of the location?
A luxury villa in Portugal stands out through the harmonious combination of multiple elements, but location exclusivity is undoubtedly the cornerstone — whether it’s a stunning view of the Atlantic, proximity to a golf course, or integration into an untouched natural landscape. Design also plays a key role, often blending contemporary architecture with traditional Portuguese influences to reflect individuality and sophistication. High-quality materials — such as marble, fine woods, and artisanal finishes — raise the bar, while technology (smart home systems, heated pools, security features) adds functionality and comfort. However, what truly sets a luxury villa apart is its ability to deliver a unique, personalized experience — something highly valued by discerning buyers in this segment.
7. What distinguishes your company from others in the market? What do you believe you deliver differently or better?
What sets us apart is our client-centric approach, combined with the operational strength we inherit from being part of a large group like MAP. While other companies may also pride themselves on customer service, we go a step further by pairing that attention to detail with the technical and financial capacity to execute complex projects without compromise. We provide full support throughout all phases of the build — from initial concept to final delivery — with a dedicated team that ensures quality, meets deadlines, and maintains open, ongoing communication with the client. Our specialization in luxury villas allows us to anticipate the needs of the most demanding buyers, delivering customized solutions that go well beyond the standard. We’re always mindful that we are not just delivering a property — we’re delivering an elevated lifestyle, backed by the credibility of a consolidated group and the flexibility of a boutique firm.
