There are currently 11 operational Branded Residences projects in Portugal. But the supply will more than double over the next few years: another 14 developments are in the pipeline, an increase of 130%, well above the global growth rate of 60%. This is what Savills points out in its recent study ‘Branded Residences Overview 2025’.
There are currently 6 projects in the Algarve and 5 in Lisbon. Another 6 are in the pipeline in the Algarve region, plus 5 in Lisbon, 2 in Borba and 1 in Comporta. Most of them are resort projects and will have brands such as JW Marriott, Anantara, Tivoli, Six Senses, Ramada or Double Tree by Hilton. But there is also potential for growth in urban destinations.
A Branded Residence is an asset managed and operated by an international brand (hotel or otherwise), which does not own the property. The owners benefit from high potential for appreciation, and can use the residences to increase supply in the case of tourism projects. For property developers, the returns are also interesting, according to Savills. A branded residence also increases sales rates, as brands are globally recognised by a wider, worldwide audience. Globally, the brand premium is around 33%, 34% in a resort, 27% in a global city, and 29% in Europe.
The consultancy estimates that by 2030 there will be around 1,500 Branded Residences in operation in 100 countries, operated by more than 200 global brands. Last year alone 240 units opened, with major growth in the United Arab Emirates and the USA. Ritz and Four Seasons lead the list of major global players.
Portugal has several ideal characteristics for attracting branded residence projects, starting with its good climate, good connectivity (especially important for second homes), security and an attractive lifestyle (golf, beaches, wine, gastronomy), and it continues to be interesting even without instruments such as the Golden Visa.
Savills experts point out that ‘the market is not yet saturated, new locations are still emerging, such as Comporta or Borba. The landscapes are an attractive factor and guarantee a unique destination in the world.’
In Portugal, Branded Residences have a lower percentage of luxury brand operations than on a global level but, according to Savills, this only proves that ‘this sector doesn't have to be only ultra-luxury, on the contrary’.
Paula Sequeira, Head of Consultancy & Valuation at Savills, emphasised that ‘in addition to the already established locations in Portugal, such as the Algarve and Lisbon, the Comporta region has been positioning itself as the next reference destination for branded residential projects. The region is clearly prepared for a well-established market, competing with other reference destinations in the Mediterranean basin. However, we have identified other regions with potential for this type of project, namely the city of Porto, an increasingly globally recognised urban destination for business, tourism and new residents. Looking ahead, the outlook for this market in Portugal remains very optimistic, with an extraordinary growth rate predicted for the next five years, reflecting the confidence of investors and users.’
Louis Keighley, Head of Development Advisory, Savills Global Residential Development Consultancy, also commented that ‘what is promising for Portugal is that, from an urban perspective, Lisbon ranks second in Europe in terms of the number of projects, followed by London, and is also the most active resort market in the region. The diversity of developers and brands entering the market signals strong confidence, underlining significant growth and interesting opportunities for the branded sector in Portugal's different markets.’
The case of the W Algarve
In Albufeira, the Marriott group's W Algarve Residences is already in full operation, with 134 rooms and 83 luxury residences. The residences and rooms share various services, such as a gym, catering and other amenities. Residents and guests can take advantage of loyalty plans.
According to Savills, the project was 80% sold on plan for around 5,852 euros per square metre, a figure that more than doubled the average value per square metre on the local market at the time, and which guaranteed a 30% premium. In two years, prices have risen by 16%, and the price per square metre is now almost 10,000 euros, allowing for a resale of around 70% above the purchase price.
Some customers are looking for a second home (60 per cent) and, in addition, an investment. Others buy mainly for the investment, and end up enjoying it too. Above all, they value the security of management by a global brand with a good reputation, such as Marriott.
