U.S. citizens, who currently make up about 12% of international demand for homes in Portugal—ranking second only to the United Kingdom- are increasingly eyeing Madeira, which accounts for 6.1% of recent home searches, all attributed to the so-called ‘Trump effect’.
According to the idealista.pt portal, most searches focus on properties priced above 1 million euros, with Lisbon, Faro, and Porto attracting the most interest, representing 46.5%, 16.1%, and 9.4% respectively. There is also strong demand in regions like Madeira and the Azores (3.9%), with Setúbal in between at 5.6%.
Data for the 4th quarter of 2025 reveal that UK citizens are still ahead, with 13% of demand, followed by Americans with 12%, Germans 10%, French 9%, Spaniards 8%, the Dutch and Brazilians, both with 6%.
It should be noted that in addition to the national weight, there is the internal weight. “On the mainland, North Americans also sustain international demand for luxury homes for sale, especially in Leiria (16.8% of the total foreign district), Lisbon (15.8%), Coimbra (15.5%) and Porto (14.3%)”, while “where demand from the US has the least impact on the international premium total is on the island of Porto Santo (5.9%), Faro (7%) and Portalegre (7.2%).”
In Madeira, North Americans represent 10.1% of this domestic international demand, eight places above Porto Santo, the place/region/island of the country with the least pressure from these new investors.
Azores ‘assaulted’ by new interested parties
Idealista says that “visits to luxury properties in Portugal from the USA also continue to fuel premium international demand in various areas of the country, especially the islands of the Azores archipelago, which can be explained by geographical proximity and historical connections. The USA even represents 39.1% of the total foreign visits to luxury homes on the island of Faial. And they weigh 36.1% in the international demand for premium housing on the island of Terceira, where the US has installed the Lajes military air base for several years. Also on the islands of São Miguel and the island of São Jorge, the USA represents more than 30% of premium international demand. North American demand is also very expressive in the foreign total on the islands of Santa Maria (29.6%), Pico (26.1%), and Flores (23.1%).”
The context
“The most recent data from idealista reveal that the demand from the US for luxury homes for sale in Portugal remains very expressive, despite there being fewer tax incentives for real estate investment in our country,” a spokesperson for the company states.
That is, since “US domestic and foreign policy has been shaken by the adoption of several measures taken during the first year of Donald Trump’s new presidential term. Domestically, Americans have been feeling the effects of their harsh immigration policy, which has resulted in 605,000 deportations in the last year, and are seeing great pressure on the Federal Reserve to lower interest rates. Externally, the application of harsh tariffs to several countries in the world – the European Union included – and the capture of Venezuelan President Nicolás Maduro earlier this year, along with the escalation of tensions with Iran,” are all mitigating factors.
It is, therefore, “in this context of instability with an epicenter in the US that US families and investors – namely, those with high purchasing power – tend to seek refuges to live and invest. And, it seems, Portugal continues to be an option for these foreign investors from the US, given its strategic position, favourable tax policies, and low crime, in addition to the mild climate.”
Samantha Gannon
info at madeira-weekly.com
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